The National Association of Insurance Commissioners (NAIC) has decided an indirect, behind-the-scenes approach to reducing the strain on health-insurance agents through the medical-loss ratio (MLR) provision will be most effective.
In a surprise announcement, the NAIC decided against supporting House legislation that would exempt agents' commissions from the MLR.
Interim regulations issued by the Department of Health and Human Services (HHS) to implement the federal healthcare-reform law classified producer compensation within overall administrative expenses that are limited to 15 percent or 20 percent of premiums collected. Under H.R. 1206, producer compensation would be calculated outside of that MLR.
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