Agents Seek to Exclude Commissions From MLR Requirements

NU Online News Service, WASHINGTON–A coalition of insurance agent groups is asking the National Association of Insurance Commissioners (NAIC) to exclude commissions from a new medical loss ratio (MLR) requirement in the health care law.

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.