PPACA: NAIC Panel Backs MLR Measure
WASHINGTON BUREAU — The Professional Health Insurance Advisors Task Force at the National Association of Insurance Commissioners (NAIC) has endorsed H.R. 1206, a U.S. House bill that calls for removing agent commissions from medical loss ratio (MLR) calculations.
Task force members decided to support the bill Thursday during a conference call.
The NAIC formed the task force in November 2010. The head of the task force, Kevin McCarty, the Florida insurance commissioner, declined to comment on the task force recommendation.
Jane Cline, the West Virginia commissioner, voted against supporting the bill, and Wayne Goodwin, the North Carolina commissioner, abstained.
The NAIC executive committee must consider the issue before the NAIC as a whole can give H.R. 1206 official support.
The Patient Protection and Affordable Care Act of 2010 (2010) requires health insurers to spend 85% of large group revenue and 80% of individual and small group revenue on health care and quality improvement efforts.
The U.S. Department of Health and Human Services (HHS) has issued interim regulations that would classify producer compensation as an administrative expense.
Producers have argued that their compensation should be excluded from the calculations because customers are the ones who pay the commissions. Insurers collect the commissions as a courtesy to the customers, producers say.
Producer groups have reported this year that insurers are cutting individual and small group commissions
Similar Posts:
- Bay State Adjusts Exchange Program
- NAHU 2011: Raindrops Start to Fall
- An Overview Of The Major Life Insurance Companies
- MIB: Life Activity Creeps Higher
- The insurance guide for small businesses
