Reps. Mike Rogers and John Barrow have followed through on a commitment to introduce a bill that could keep producer commissions out of health carriers’ medical loss ratio (MLR) calculations.
Rogers, R-Mich., and Barrow, D-Ga., lined up 14 cosponsors for the bill, H.R. 1206.
If enacted as written, the bill would shield health agents and brokers from the full brunt of a rule in the Patient Protection and Affordable Care Act (PPACA) that require health carriers to spend 85% of large group revenue and 80% of individual and small group revenue on helth care and quality improvement efforts.
Health producers say the current MLR formula is encouraging carriers to cut their commissions by 50% or more.