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Make Broker Commissions Pass-through Expenses in the MLR

Jan 12, 2018

NAHU
​January 12, 2018

​TAKE ACTION

Yesterday, Senators Johnny Isakson (R-GA) and Chris Coons (D-DE) introduced ​S. 2303, joining Representatives Billy Long (R-MO) and Kurt Schrader (D-OR) who introduced ​H.R. 4575 last month. These bills would remove independent agent and broker compensation from the definition of "administrative expense" from the Medical Loss Ratio (MLR) calculation. The MLR regulation has caused carriers to reduce the commissions of agents and brokers, which has led to a reduction in consumer access to crucial services provided by insurance producers on a daily basis. Treating broker commissions as a pass-through expense will protect jobs and preserve the critical role of agents and brokers and ensure that insurers would be better equipped to compete in the marketplace. 

NAHU has long advocated that the MLR should treat broker commissions as pass-through expenses for the following reasons: 

Contact your senators and representative. Send an Operation Shout today asking your member of Congress to cosponsor H.R. 4575 and senators to support S. 2303! You can also call your legislators at the numbers below.

​​TAKE ACTION

For questions, please ​contact a member of your B&P Sales Team - 888.722.3373.​

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