Jacksonville Association of Health Underwriters

News

NAIC Task Force Votes to Support Agents and Brokers
By Jessica Waltman / NAHU July 1, 2011

Yesterday, the National Association of Insurance Commissioners (NAIC) took a very important action to advance the cause of removing independent agent and broker compensation from the Patient Protection and Affordable Care Act's (PPACA) medical loss ratio (MLR) requirements. The NAIC's Professional Health Insurance Advisors (EX) Task Force voted to formally endorse H.R. 1206, the bipartisan legislation introduced by Representatives Mike Rogers (R-MI) and John Barrow (D-GA) that would provide state insurance regulators with greater flexibility on MLR implementation. The support of the NAIC is critical to our work with Congress and the Obama administration to solve the problems PPACA's MLR requirements have caused for agents and brokers, and more importantly the problems they have created for your individual and employer clients. In a recent hearing on H.R. 1206 held by the House Energy and Commerce Committee, where both Rep. Rogers, and Rep. Brett Guthrie (R-KY) spoke in support of agents and brokers, federal Department of Health and Human Services (HHS) representative Steve Larsen repeatedly stated that the administration was watching what the NAIC would do on this issue before taking additional action. The motion to endorse H.R. 1206 was made by Mississippi's Insurance Commissioner Mike Chaney and seconded by Wisconsin's Deputy Commissioner of Insurance Dan Schwartzer. The commissioners voted by acclamation to endorse the legislation. The sole dissenter was outgoing West Virginia Insurance Commissioner Jane Kline, who has always opposed this effort. North Carolina Insurance Commissioner Wayne Goodwin abstained, as did task force chairman and bill champion Florida Insurance Commissioner Kevin McCarty, for procedural reasons. In addition to calling on Congress to pass H.R. 1206, the task force also agreed to work with HHS on a parallel track to seek an immediate regulatory solution. This effort will be led by NAIC President and Iowa Insurance Commissioner Susan Voss. NAHU could not be more pleased with the decision of our nation's insurance regulators to formally recognize that independent agents and brokers need to be protected in their role as advocates on behalf of American families and businesses. If you live and/or do business in the states where the insurance regulator voted in support of our effort yesterday, we encourage you to contact your regulator to express your appreciation. These states are Florida, Mississippi, Wisconsin, Nevada, North Dakota, South Dakota, Delaware, New Hampshire, Montana, Alaska, Kansas, & Louisiana. Another way that you can help is by encouraging your member of Congress to sign on as a co-sponsor to H.R. 1206. Right now, we have 97 bipartisan representatives signed on to the legislation, due primarily to the grassroots work of our members. With just a little more work, we would be able to announce over 100 co-sponsors. Most members of Congress are back in their districts this weekend for 4th of July celebrations. If you see yours, be sure to either thank the representative for his/her support or ask him/or her to co-sponsor!