U.S. Reps. Mike Rogers, R-MI, and John Barrow, D-GA, reintroduced a bipartisan bill that will save jobs, protect small businesses and preserve the critical role of agents and brokers in helping consumers navigate the increasing complex health care system.
H.R. 2328, the Access to Professional Health Insurance Advisors Act of 2013 would amend a provision of the ACA known as the Medical Loss Ratio (MLR) to remove the agent and broker compensation for the definition of "administrative expense" under (MLR).
"The unfortunate consequence is that insurers are dramatically cutting commissions to agents to comply with the MLR rule. This means jobs are being cut, agents and brokers are beginning to disappear, and small businesses and individuals are having a harder time accessing affordable insurance," Rogers said. "It is critical that the indispensable role played by licensed independent insurance producers is recognized and protected."
"This provision in the Affordable Care Act negatively impacts small businesses that so many consumers rely on for information," said Congressman Barrow. "Insurance agents and brokers serve as the voice of health insurance for millions of families and small businesses in rural communities. These folks can help explain to consumers the many changes taking place in the healthcare world over the next few years, and it's important that their ability to inform the public isn't weakened by this new law."
Under the current MLR, health insurance carriers are required to treat agent and broker commissions as part of their administrative costs. This regulation has caused serious harm to agents and brokers ability to continue to provide essential services to consumers who depend on them to assist with coverage or claim problems. Many of these agents and brokers are part of one or two person small businesses. This bipartisan legislation would ensure that the doors of these small businesses stay open and individuals continue to have access to quality insurance coverage.