NAIC to Hold Public Hearing in Austin On Commissions

[Crabcake Johnny]

The NAIC task force set up to look at the MLR's affect on broker commissions is going to hold a public hearing in Austin TX March 27th.

Professional Health Insurance Advisors (EX) Task Force

I can't attend although I really wish I could.

 

[STIBROKER]

oh snap.......will have to show up for that one..............I got you covered John.....

Ok....after thinking about what would be a big impact on this meeting I am going to stand and talk as long as they will let me....I would like to also present letters from anyone supporting this.... being from texas or any state sooooo.....send me your statements to [email protected] ......the points they want input on is...

The purpose of the hearing is to solicit comments from all interested parties regarding the impact of the Medical Loss Ratio (MLR) requirements of the Patient Protection and Affordable Care Act (PPACA) on health insurance brokers/agents, insurance consumers and insurance markets. In particular, the Task Force is interested in comments to address the following questions:

• What is or is likely to be the impact of removing commissions from what is defined as premium under the MLR requirements?
• Have commissions been reduced since the passage of the federal law? If so, what is the impact of present and potential future commission reductions? Will this cause access issues? Is it likely agents/brokers will abandon health insurance markets? Please cite specific examples.
• What will be the impact of a legislative change that treats producer commissions in the same manner as Federal and State taxes for purposes of calculating the MLR?
• What is your opinion on the optimal solution to balance health plan/insurer concerns, consumer interests and the interests of agents/brokers?

All written testimony must be submitted in an electronic format to [email protected] by Monday, March 21st at 5:00 p.m. In addition to considering written testimony from all parties, the Task Force will be inviting specific organizations to provide oral testimony at the hearing. If you have any questions, please direct them to Tim Mullen at [email protected] or 816-783-8260 begin_of_the_skype_highlighting 816-783-8260 end_of_the_skype_highlighting.

 

[Crabcake Johnny]

Here's my statement:

$500,000 in volume X 10% commission = $50,000. $13,000 in marketing/office expense makes that $37,000. While not pure math for IRS purposes, you'll walk with about 30K.

That's about what a waiter at Chili's makes.

 

[JAngelson79]

Here's my statement:

$500,000 in volume X 10% commission = $50,000. $13,000 in marketing/office expense makes that $37,000. While not pure math for IRS purposes, you'll walk with about 30K.

That's about what a waiter at Chili's makes.

If that waiter at Chili's picks up a couple of double shifts they can eclipse that mark pretty quickly...

Justin

 

[taterpeeler]

scotty... i may try and get my arse up there for this... what shall i wear... blue suit, brown suit or white sheet??... lol

 

[STIBROKER]

The usual...........

 

[jbage007]

In all seriousness, you guys should somehow get together and make a concerted effort to show that Jay Rockefeller does NOT have the best interest of the American people in mind.

Refer to this story

The best way to do that is to demonstrate that people need help and that help is provided by professional, LICENSED agents & brokers. In Rockefeller's world, people don't need any help - they are all as smart as he is. But in the real world, people DO need help and thanks to Rockefeller (primarily) professional agents are being forced to leave the business altogether.

The fact of the matter is that if commissions were not included in MLR, it would not have the slightest impact on premiums. He is making an argument out of thin air that leads to the illogical conclusion that every American will stand to lose a few hundred bucks if commissions are not counted. But that argument has no basis in fact and has absolutely no actuarial soundness to it.

Seriously you guys, it would be a HUGE mistake to go there and sound like a bunch of crybabies. Instead, make it clear that agents who are sticking around - for a little while - are being forced to lay people off, etc.

Good luck!

 

[djs]

The fact of the matter is that if commissions were not included in MLR, it would not have the slightest impact on premiums. He is making an argument out of thin air that leads to the illogical conclusion that every American will stand to lose a few hundred bucks if commissions are not counted. But that argument has no basis in fact and has absolutely no actuarial soundness to it.

Just curious, how do you assume that commissions outside of MLR do not have an impact on premiums? Common sense tells me otherwise, but I might be missing something.

Would the impact be significant? An extra 10% in commissions, even if 'recovered' over 3 years, would seem to add about 3% to premiums. With a $200 a month premium (yeah, right), that is $6 a month or $72 a year.

I think a smarter move is to show why an agent is worth the minor cost it could add to the premium, rather than trying to hide the fact that the money has to come from somewhere.

Dan

 

[taterpeeler]

In all seriousness, you guys should somehow get together and make a concerted effort to show that Jay Rockefeller does NOT have the best interest of the American people in mind.

Refer to this story

The best way to do that is to demonstrate that people need help and that help is provided by professional, LICENSED agents & brokers. In Rockefeller's world, people don't need any help - they are all as smart as he is. But in the real world, people DO need help and thanks to Rockefeller (primarily) professional agents are being forced to leave the business altogether.

The fact of the matter is that if commissions were not included in MLR, it would not have the slightest impact on premiums. He is making an argument out of thin air that leads to the illogical conclusion that every American will stand to lose a few hundred bucks if commissions are not counted. But that argument has no basis in fact and has absolutely no actuarial soundness to it.

Seriously you guys, it would be a HUGE mistake to go there and sound like a bunch of crybabies. Instead, make it clear that agents who are sticking around - for a little while - are being forced to lay people off, etc.

Good luck!

Look big daddy, i spent 6 years, 3 terms, in politics... i think... no check that... i damn sure know how to present myself and lay dow a public apperance and speach as well as drive my point... they say obama is good... im obama without the teleprompter.... please dont be fooled by the "act" i throw down up in here (forum) OK? just ask anyone from this forum who has had a personal phone convo with me... i just cant spell
- - - - - - - - - - - - - - - - - -

Just curious, how do you assume that commissions outside of MLR do not have an impact on premiums? Common sense tells me otherwise, but I might be missing something.

Would the impact be significant? An extra 10% in commissions, even if 'recovered' over 3 years, would seem to add about 3% to premiums. With a $200 a month premium (yeah, right), that is $6 a month or $72 a year.

I think a smarter move is to show why an agent is worth the minor cost it could add to the premium, rather than trying to hide the fact that the money has to come from somewhere.

Dan

Good thought and an angle that has valid merit

 

[Ann H]

Commissions add to the premium in its simplest form. But in an advanced form they do not, because the service that agents provide must come from somewhere. NAIC commissioners have been complaining that it would triple the work load of their complaint departments to handle the problems that agents have been resolving.

I agree that the NAIC doesn't want to hear crybaby agents. So... Talk to the NAIC in the way they want to hear it. Tell them that we lower their workload. Tell them that we represent the consumer and are consumer advocates. Tell them that we are INDEPENDENT and not tied to any particular insurer. Tell them that we are a voice for the small business and the family. Tell them that we are much more efficient than salaried staff at the insurer's home office. Tell them that we keep insurance companies honest by not selling products that don't meet the "smell test". Sheeeez, why am I telling you this. You already know this. Too bad Rockefeller doesn't.