NAIFA Finds Deep Health Commission Cuts

Producers say the commission cuts have been substantial, NAIFA says.

• 53% of the survey participants said their commissions have been lowered by 25% or more.
• 17% of the participants said the carriers they work with have cut commissions by 50% or more.

NAIFA President Terry Headley, NAIFA president says members of Congress and regulators have

acknowledged that professional, licensed health insurance agents are vital to the health insurance market.

“These agents do a fantastic job ensuring that people and businesses get proper coverage and the service they deserve,” Headley says in a statement about the survey results. “But we can’t drastically cut agents’ pay, sometimes in half or more, and expect them to continue working at the same level, with no consequences for the clients they serve.”

If survey participants’ commissions remain depressed:

• 29% plan to stop selling individual health insurance.
• 18% plan to stop selling health insurance.
• 44% plan to charge fees for services they have traditionally performed at no additional cost to clients.

Some producers will have a hard time adding service fees, because many states prohibit insurance agents who receive commissions from charging fees, Headley says.

“Congress needs to fix this part of the health care law so consumers will continue to benefit from the valuable services agents provide,” Headley says.

Other MLR coverage from National Underwriter Life & Health:

• MLR Action
• NAIC Delays MLR Action
• MLR Commission Exclusion Bill is in the House
• MLR Battle Heats Up
• Ario to NAHU: Agents Likely to be Part of Exchange System