PIA Endorses Access to Professional Health Insurance
Advisors Act of 2011 (H.R. 1206)
The National Association of Professional Insurance Agents (PIA) has endorsed
the Access to Professional Health Insurance Advisors Act of 2011 (H.R. 1206)
sponsored by Reps. Mike Rogers (R-Mich.) and John Barrow (D-Ga.). The
legislation clarifies that producer compensation will not be considered as
part of medical loss ratio (MLR) calculations under the healthcare reform law
enacted last year.
Preliminary regulations issued by the federal Department of Health and
Human Services (HHS) counted producer compensation within medical loss
ratio (MLR) calculations, administrative expenses limited to 15% or 20%
under the Patient Protection and Affordable Care Act (PPACA). This action
threatens the ability of consumers to utilize the services of licensed
professional insurance agents as they navigate the complexities of a health
insurance system that is undergoing significant changes. It also undermines
"Congress specifically included licensed health insurance agents and brokers
as an integral part of the healthcare delivery system under PPACA," said
PIA National Director of Federal Affairs Mike Becker. "PIA believes that
HHS should not be permitted to exclude agents from the marketplace through
regulation, especially when the underlying legislation specifically
included agents. H.R. 1206 fixes this by specifically removing agent and
broker compensation from MLR calculations."
"Purchasing health insurance is not like purchasing other products and
services," PIA stated in comments filed for a March 27 hearing by the
National Association of Insurance Commissioners (NAIC). "If you make a
poor choice, you may not be aware of the consequences of your decision
until it's too late. Many consumers who will be most negatively affected
by the loss of licensed, trained health insurance agents are the elderly
and small business owners who don't fully understand all the options
available to them."
PIA members from around the country will urge lawmakers to pass H.R. 1206
during their annual Federal Legislative Summit March 30-31 in Washington, D.C.