Washington

Insurance agents have won a critical change in the House Energyand Commerce Committee version of health care reform legislationthat allows them to remain a crucial part of the distributionsystem.

Through language negotiated by conservative Democrats as theHouse left for its summer recess, agents won explicit authority tosell policies within the health insurance "exchanges" that would becreated under the legislation.

The provision in the billreported out by the committee would also give agents the authorityto sell the so-called "public plan" if the controversial option iscreated under the final version of the legislation, according toofficials of the Independent Insurance Agents and Brokers ofAmerica.

At the same time, officials of all three property and casualtyinsurance agent groups independently made clear that while theydisagreed with some of the provisions contained in the fourversions of health care reform legislation that have been reportedout so far, they will remain at the table to protect the interestsof intermediaries and their clients.

According to IIABA officials, the key amendment to the committeebill 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 woulddouble the small-business exemption from the proposed employermandate to $500,000 in payroll from the former $250,000, as well aslanguage explicitly allowing the creation of health insurancecooperatives–although the public plan option is still in thebill.

"While the IIABA remains opposed to the legislation and stillhas very significant concerns with various aspects of the bill, theinclusion and passage of this amendment in the House Energy andCommerce Committee was a major victory for the IIABA," the groupsaid.

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

At the same time, key talks are ongoing among a bipartisan groupof members of the Senate Finance Committee. Industry officials andcongressional staffers believe the bipartisan bill negotiated bythat 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 theCouncil of Insurance Agents and Brokers, said the CIAB remains"optimistic that when the noise of the talking heads and partisanssubsides, a bipartisan compromise can be achieved in a way thatdoes not disrupt our clients' ability to secure and maintainhigh-quality plans that serve the needs of millions ofemployees."

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

Meanwhile, in a statement, the National Association ofProfessional Insurance Agents insisted that civility reign asnegotiations on a final bill continue.

"The members of PIA firmly believe in the American tradition ofopen debate and dialogue," said PIA President Ken Auerbach. "Thisexchange can be spirited and heartfelt, but it must always beconducted with respect and dignity for all, including our electedrepresentatives and our fellow Americans with whom we maydisagree."

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

The health care reform debate is a critical one for property andcasualty insurance agencies, many of which derive a substantialportion of their business from group benefit sales dominated byhealth coverage placements.