NU Online News Service, WASHINGTON
The coalition suggested in a letter to the NAIC that, in writing final instructions on the MLR, agent and broker commissions should not be included in the 20 percent administrative spending requirements for carriers, since 100 percent of the commissions are transferred to independent third parties.
The new health care law stipulates that administrative costs be limited to a maximum of 20 percent of insurance premiums, with 80 percent going to pay claims.
"Exempting pass-through fees from the MLR calculation would preserve existing cost-saving practices in current health insurance markets and further the intent" of the health care provisions to reduce overall spending on administrative costs," according to the letter.
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