Georgia House Sets Minimum Commission for Health Insurance Agents

[Brian Anderson]

This from today's Atlanta Journal-Constitution:

Insurance agents who sell group health policies would be guaranteed a minimum 5 percent commission under legislation the Georgia House approved Wednesday.

House Bill 838, by Rep. Shaw Blackmon, R-Bonaire, sets the premium commissions for agents who sell group health policies as well as a 4 percent minimum commission for individual health benefit plans.

“We’re noticing that some of the carriers are in fact eliminating the premium part that they’re sending to their local agents,” Blackmon said. “We’re creating a floor.”

Georgia House sets minimum commission for health insurance agents photo
As deductibles get bigger, insurers are pushing extra coverage that can help people with certain serious health problems cover out-of-pocket costs. (Photo courtesy Fotolia/TNS)
The bill protects independent agents who sell policies on behalf of large insurance carriers.

Rep. Carolyn Hugley, D-Columbus, said lawmakers have heard from agents about the need for a minimum commission.

“Agents came to us and complained to us how they were not being fairly compensated,” she said. “This aims to fix this issue.”

Hugley, who owns a State Farm franchise in Columbus, recused herself from the vote. The bill passed 145-17 and now goes to the Senate.

Bill sets minimum commission for health insurance agents | www.ajc.com

 

[AllenChicago]

Group? Those commissions were eliminated too?

What does this mean?.. "We’re noticing that some of the carriers are in fact eliminating the premium part that they’re sending to their local agents."

 

[sman]

Now it just has to pass the state Senate. If I had to bet on it, I'd say it passes.

 

[FLM2]

It passed by a wide margin in the House (145-17), you would think their would be enough votes in the Senate to get a majority.

Thank you Georgia!

 

[houcoogster]

Yes.^^^

Thank you Georgia!

Why isn't Texas leading the way on this???.......Puppets???

 

[sman]

It passed by a wide margin in the House (145-17), you would think their would be enough votes in the Senate to get a majority.

Thank you Georgia!

The Senate is made up of 40 Republicans and 18 Democrats. Not that this would be a party line vote, but I think the numbers are there to pass the Senate and then on to Governor Deal to sign into law.

The lead on this bill in the House is an insurance agent and he also happens to be the chairman of the Rules committee. He gets to determine which bills make it to the floor for a vote. It's good to have him on our side. Just not sure why they made group 5% and indy 4%. But it's better than zero. Will be interesting to see how the carriers respond.

 

[kgmom219]

Yes.^^^

Thank you Georgia!

Why isn't Texas leading the way on this???.......Puppets???

Because our legislature only meets in odd years?

 

[mudhound]

as much as it benefits me, I am against setting commissions
What happens when the other party gets in?
Or, what about this? "If i am elected I will cut commissions and lower your rates?"
This has a cluster blank written all over it.

 

[somarco]

If the legislature starts setting commissions, next thing they will think they can dictate underwriting rules, benefits and rates.

 

[kgmom219]

If the legislature starts setting commissions, next thing they will think they can dictate underwriting rules, benefits and rates.

That already happens in TX.

Which may explain why we have some of the highest rates in the country.