Washington

Insurance agents have won a critical change in the House Energy and Commerce Committee version of health care reform legislation that allows them to remain a crucial part of the distribution system.

Through language negotiated by conservative Democrats as the House left for its summer recess, agents won explicit authority to sell policies within the health insurance "exchanges" that would be created under the legislation.

The provision in the bill reported out by the committee would also give agents the authority to sell the so-called "public plan" if the controversial option is created under the final version of the legislation, according to officials of the Independent Insurance Agents and Brokers of America.

At the same time, officials of all three property and casualty insurance agent groups independently made clear that while they disagreed with some of the provisions contained in the four versions of health care reform legislation that have been reported out so far, they will remain at the table to protect the interests of intermediaries and their clients.

According to IIABA officials, the key amendment to the committee bill was added at the request of Rep. Charlie Melancon, D-La., Rep. Baron Hill, D-Ind., and Mike Ross, D-Ark.

Other provisions sought by agents included in the bill would double the small-business exemption from the proposed employer mandate to $500,000 in payroll from the former $250,000, as well as language explicitly allowing the creation of health insurance cooperatives–although the public plan option is still in the bill.

"While the IIABA remains opposed to the legislation and still has very significant concerns with various aspects of the bill, the inclusion and passage of this amendment in the House Energy and Commerce Committee was a major victory for the IIABA," the group said.

They also cautioned that House Democratic leadership has given "no assurances" that the final bill that goes to the House floor in September will contain the provisions. That is because the bill must be reconciled with versions of the legislation reported out by the House Ways and Means Committee and the Education and Labor Committee.

At the same time, key talks are ongoing among a bipartisan group of members of the Senate Finance Committee. Industry officials and congressional staffers believe the bipartisan bill negotiated by that Senate panel will form the backbone of any final legislation. This group is not expected to complete work on a bill before Sept. 15.

In a statement to its members, Ken Crerar, president of the Council of Insurance Agents and Brokers, said the CIAB remains "optimistic that when the noise of the talking heads and partisans subsides, a bipartisan compromise can be achieved in a way that does not disrupt our clients' ability to secure and maintain high-quality plans that serve the needs of millions of employees."

However, Mr. Crerar added, "we are convinced the legislation that has thus far been approved (by one Senate committee and three House committees) threatens to do considerable violence to existing [group health] plans."

Meanwhile, in a statement, the National Association of Professional Insurance Agents insisted that civility reign as negotiations on a final bill continue.

"The members of PIA firmly believe in the American tradition of open debate and dialogue," said PIA President Ken Auerbach. "This exchange can be spirited and heartfelt, but it must always be conducted with respect and dignity for all, including our elected representatives and our fellow Americans with whom we may disagree."

He added that "in America, everyone has the right to express his or her views. Just as importantly, everyone has the right to have their views heard fully by their fellow citizens."

The health care reform debate is a critical one for property and casualty insurance agencies, many of which derive a substantial portion of their business from group benefit sales dominated by health coverage placements.

Special Reports /

Agents Win Key Provision In House Health Reform Package

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