The National Association of Insurance Commissioners (NAIC) hasdecided an indirect, behind-the-scenes approach to reducing thestrain on health-insurance agents through the medical-loss ratio(MLR) provision will be most effective.

In a surprise announcement, the NAIC decided against supportingHouse legislation that would exempt agents' commissions from theMLR.

Interim regulations issued by the Department of Health and HumanServices (HHS) to implement the federal healthcare-reform lawclassified producer compensation within overall administrativeexpenses that are limited to 15 percent or 20 percent of premiumscollected. Under H.R. 1206, producer compensation would becalculated outside of that MLR.

Kevin McCarty, Florida insurance commissioner and incoming NAICpresident, says he is not dropping his support for an exemption butchanging his approach.

“Commissioner McCarty has not changed his position and continuesto support the bill sponsored by Mike Rogers, R-Mich., which wouldremove sales-agents' fees from the administrative costs of insurersfor calculation of the medical-loss ratio,” a statement from hisoffice says.

The NAIC task force McCarty heads continues to work with allinterested parties and HHS to “evaluate the possibility of acompromise that would result in a more timely result than pursuinga change [via Congress] in the MLR,” the statement says.