Insurance producers are fighting the Patient Protection and Affordable Care Act’s (PPACA) element that excludes commissions from the calculations of the minimum medical loss ratio. The PPACA states that health insurance companies in the large group market must spend a minimum of 85 percent of premiums on healthcare services, and those in the small group and individual markets much spend at least 80 percent on healthcare services. Broker and agent groups are battling on Capitol Hill to remove their commissions from the requirement. They had hoped that the cause would…
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The National Association of Insurance Commissioners withdraws its support of an insurance bill on its way to Congress
Insurance brokers have been rallying behind a controversial bill before Congress. The bill was first introduced last month by Senator Mike Rogers of Michigan. The legislation seeks to remove the sales agent fees from insurers’ administrative costs. Supporters of the bill assert that it will help protect the jobs of agents. Furthermore, by reducing costs, insurers will be able to transfer the savings down to consumers. For insurers, the bill holds such promise that they were hoping that federal insurance regulators would endorse it. Regulators, however, have a much different…
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