- 901
so it should be excluded from MLR.
Got this urgent "contact your Ins. Comm. today" memo from NAHU. It's the first time I have seen commissions referred to as a mere "pass-through" item. In fact, I had to re-read the memo 2 or 3 times to figure out what they were talking about.
Excerpts:
NAHU staff has been very engaged with NAIC meetings and deliberations on this all important topic of MLR definitions, and pressing our views on how MLRs will affect access to agent/broker services, insurance access and affordability, as well as solvency regulation.
But we need all of your help today to contact your state insurance commissioner and urge that they not include fully-disclosed pass-through fees collected by carriers in MLR calculations, and that they not yield to outside pressures to somehow include certain federal taxes (expenses beyond the control of insurance carriers) in the MLR calculations in contravention of the specific statutory language of the Patient Protection and Affordable Care Act (PPACA).
Carriers today routinely collect funds that are passed-through to agents as an operational convenience to their members. Particularly in the small business and individual market, health plans include commissions in their premiums, but pass 100% of these funds along to agents.
It would be counterproductive and harmful to broader health insurance reform efforts for the MLR provisions to eliminate this sort of cost-saving administrative conveniences which carriers provide to their members.
Got this urgent "contact your Ins. Comm. today" memo from NAHU. It's the first time I have seen commissions referred to as a mere "pass-through" item. In fact, I had to re-read the memo 2 or 3 times to figure out what they were talking about.
Excerpts:
NAHU staff has been very engaged with NAIC meetings and deliberations on this all important topic of MLR definitions, and pressing our views on how MLRs will affect access to agent/broker services, insurance access and affordability, as well as solvency regulation.
But we need all of your help today to contact your state insurance commissioner and urge that they not include fully-disclosed pass-through fees collected by carriers in MLR calculations, and that they not yield to outside pressures to somehow include certain federal taxes (expenses beyond the control of insurance carriers) in the MLR calculations in contravention of the specific statutory language of the Patient Protection and Affordable Care Act (PPACA).
Carriers today routinely collect funds that are passed-through to agents as an operational convenience to their members. Particularly in the small business and individual market, health plans include commissions in their premiums, but pass 100% of these funds along to agents.
It would be counterproductive and harmful to broader health insurance reform efforts for the MLR provisions to eliminate this sort of cost-saving administrative conveniences which carriers provide to their members.