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NAIFA White Paper Examines the Damage Done to Health Insurance Professionals and Their Clients by the Health Care Law’s MLR Rule | NAIFA
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NAIFA White Paper Examines the Damage Done to Health Insurance Professionals and Their Clients by the Health Care Law’s MLR Rule

Contacts:

Mark Briscoe
Senior Director of Strategic Communications
703-770-8111

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FALLS CHURCH, VA (August 3, 2011) —NAIFA has released a new white paper, No Premium on Value: The Health Care Law’s Medical Loss Ratio Brings Dangerous Consequences for Consumers and the Agents Who Serve Them, which explores unintended consequences of a Department of Health and Human Services rule that requires health insurance companies to spend 80 to 85 percent of their income from premiums on medical expenses and quality improvements.

The paper features first-hand accounts by health insurance brokers of how the MLR rule has damaged their businesses, reduced their ability to provide customer service, and harmed consumers.  For example, more than one in 10 agents surveyed say they have stopped selling and servicing health care policies for individuals, and nearly 30 percent foresee having to do so. Among the brokers profiled in the white paper is Ed Anderson of Edina, Mo., who said, “I cannot imagine what the damage of the MLR has been to agents nationwide. We’ve lost valuable people because of this.”

In addition to interviews with brokers, the white paper cites academic research, government reports and industry studies as evidence of the devastating impact of the MLR. The paper concludes with a recommendation for HHS to reconsider the harmful rule and support for congressional action to provide a remedy.

The white paper is available today on the NAIFA website. NAIFA leaders are available for further comment on topics raised in the paper.

About NAIFA: NAIFA comprises more than 600 state and local associations representing the interests of approximately 200,000 agents and their associates nationwide. NAIFA members focus their practices on one or more of the following: life insurance and annuities, health insurance and employee benefits, multiline, and financial advising and investments. The Association’s mission is to advocate for a positive legislative and regulatory environment, enhance business and professional skills, and promote the ethical conduct of its members.