Vermont comp proposal: $15 per person per month

PPACA is supposed to create a body of independent ombudsmen, or salaried “navigators,” to help consumers and employers use the exchange system, but the U.S. Department of Health and Human Services (HHS) has ruled that agents and brokers who receive compensation from health insurers cannot be exchange navigators.

In May 2012, Vermont exchange managers commissioned a survey of 50 Vermont small businesses that offer health benefits.

About 78 percent of the business owners said they would do without broker services if the cost of the services amounted to 4 percent of the premiums, and 57 percent said they would do without broker services if the cost of the services amounted to 2 percent of the premiums, exchange officials said.

But the exchange staff met with brokers and found that, if broker fees are too low, brokers will refuse to help people use the exchange, officials said.

Exchange users also would have to pay a separate benefit plan administration fee, officials said.

Vermont Health Connect is using a bidding proposal to hire an administer to provide qualified health plan (QHP) administration services for all exchange QHP users.

See also:

• Brokers get on board with PPACA
• Mapping the PPACA world for agents and brokers
• AHIP to feds: Make broker comp rules flexible