Action Set on MLR Bill

It is sponsored by Rep. Mike Rogers, R-Mich., and Rep. John Barrow, D-Ga. It was introduced last March.

Similar legislation, S. 2068, the Access to Independent Health Insurance Advisors Act, was introduced in the Senate in February by Sen. Mary L. Landrieu, D-La., chair of the Senate Committee on Small Business and Entrepreneurship, and Sen. Johnny Isakson, R-Ga. Sens. Lisa Murkowski, R-Alaska, and Ben Nelson, D-Neb., are also cosponsors of that legislation.

The bills are somewhat different, but generally seek to “clarify” that producer compensation would not be considered as part of MLR ratio. This provision limits administrative costs in health insurance premiums to 15 percent of large groups and 20 percent for small groups. As a result, agents say their commissions have been cut up to half on health insurance products.

Agency trade groups declined to confirm or deny that House action was pending.

“We will be watching this summer for what the Supreme Court decides relative to the constitutionality of the healthcare law as it may determine the pathway forward in terms of timing and issues the House will move. We are working closely with the Energy and Commerce Committee staff to be ready,” said John Greene, NAHU’s vice president of congressional affairs.