Ritter Insurance Marketing, Craig Ritter

Bipartisan Senate bill crafted to exclude agent commissions from the Medical Loss Ratio (MLR) calculation

A bipartisan, companion Senate bill to House bill H.R. 1206, which proposed excluding insurance agent compensation from medical loss ratio (MLR) calculations will be introduced in the next few days.   Some of the more notable changes to House bill would be removing commissions from the MLR calculation for small group and individual health programs.  Commissions on large groups and bonuses for small group and individual would not be exempt from the MLR calculation (LifeHealthPro).   Good news for the agent community?  Encouraging news for our industry on the political front due to the bipartisanship?  Not so fast according to a Director at Health and Human Services (IFAwebnews.com ), who believes there is no room for a regulatory fix on this issue.   Recently, in December 2011, Health & Human Services went against the NAIC and decided to not exempt agent commissions from the MLR rule.   It seems that NAHU is leading a charge for change that is making an impact with the legislature.  But unfortunately, it seems all of this is going to be decided by one thing and one thing only, the ruling by the Supreme Court this coming July.  Let’s hold out hope for positive change and most importantly, more reasonable commissions.  It sure will be interesting to watch between March and July.  Stay tuned.

Posted by filed under Health Care Reform, Individual Major Med, Insurance Companies, Insurance Products, News, States, Uncategorized .

  • Mike

    Don,

    Thanks.

    Mike Shaffer

  • Mike,
    It is only applicable to the individual and small group markets.
    Don Mazza

  • Mike

    Craig,

    Does MLR affect Medicare supplement or Medicare Advantage commissions or it on applicable to the individual and small group market?


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