Update: Troubled ACA Co-Op Suspends Agent Commissions; Iowa Commissioner Responds to NAIFA

February 25, 2015

Earlier this month, NAIFA reported to members that CoOportunity Health, the Affordable Care Act Co-Op based in Iowa (which also operated in Nebraska), was heading towards insolvency.  Earlier this year, an Iowa district court placed the Co-Op under the control of the Iowa Insurance Division (IID) which is now liquidating the company.    NAIFA previously informed members that during the rehabilitation phase, the Iowa Insurance Commissioner decided to suspend commissions to agents in Nebr...

Statement from NAIFA President-Elect Jules Gaudreau on the Anticipated DOL Proposal to Define Who Is a ‘Fiduciary’

February 23, 2015

“ NAIFA members provide guidance to consumers about their retirement investments, including investments in IRAs, 401(k) accounts, and other assets invested to produce retiree income. NAIFA is concerned that a rule that would endanger the business model that has allowed NAIFA members to successfully help their middle-market investor clients for decades would very possibly harm the people it is designed to protect.   “While we have not seen the new proposed rule, the White House report sta...

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CMS Creates Special Enrollment Period for People Unaware of ACA Penalties

February 20, 2015

The Centers for Medicare & Medicaid Services has created a “special enrollment period” from March 15 through April 30 for people who failed to obtain health insurance in 2014 and owe an Affordable Care Act-mandated fee when they file their taxes this season.   The regular enrollment period closed earlier this week, but the special period will accommodate people who did not realize the new penalty was in effect until they began preparing their 2014 federal income taxes. The New York Ti...

NAIFA President tells WSJ how commission-based services can be preferable over fees

February 18, 2015

In a Wall Street Journal column by Personal Finance Deputy Editor Karen Damato, NAIFA President Juli McNeely is among the advisors who say consumers can be well-served by choosing to pay their finance professional a commission over a fee. In her column, Damato reports three reasons to pay commissions, not fees, to a financial adviser: It will cost less in some scenarios.  In some cases, a fee would be larger than the actual return. And, commissions could be less expensive for t...

Bill to Remove Agent and Broker Compensation from MLR Introduced

February 10, 2015

The Access to Professional Health Insurance Advisors Act of 2015, H.R. 815, is a bill introduced this week in the House of Representatives that would remove insurance agent and broker fees from the medical loss ratio (MLR) calculation in the Affordable Care Act. The bill has 15 original cosponsors. Convincing evidence shows that including broker compensation in the MLR has seriously harmed brokers who provide health insurance, as well as the individuals and small businesses they serve. N...

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