FOR IMMEDIATE RELEASE
The Eisen Agency
Texas Health Insurance Agents Offer Statement Regarding Insurance Commissioners’ Review of H.R. 1206
Texas Association of Health Underwriters to continue to work alongside organization to adjust medical loss ratio requirements
Dallas, TX — July 21, 2011 – The Texas Association of Health Underwriters (TAHU), a professional organization of more than 1,900 health insurance agents, was encouraged by the National Association of Insurance Commissioners (NAIC) review of H.R. 1206 at an executive committee meeting last week. Backed by the organization’s Professional Health Insurance Advisors Task Force, the bipartisan federal bill would remove agent and broker compensation from the medical loss ratio (MLR) calculation. As MLR requirements currently stand, at least 80 percent of insurance premiums are to be spent on medical costs with the remaining 20 percent covering profits, marketing and administration, including agent and broker fees. The executive committee heard a scheduled report regarding the task force’s activities following its endorsement of the legislation but was not scheduled to vote on whether or not the organization would support the bill as a whole.
“In addition to considering federal legislation, the NAIC also publicly committed to working with the Department of Health and Human Services (HHS) on a parallel track to resolve the agent/broker compensation issue through the federal agency’s regulatory authority,” said TAHU President Joanna Antongiovanni. “TAHU appreciates the NAIC’s efforts to encourage a more immediate regulatory solution on this critical, job-saving issue.”
TAHU hopes that the executive committee meeting will continue the conversation regarding medical loss ratio requirements and signify the importance of immediate legislative action.
“The events of the NAIC meeting were not a surprise; there is and will continue to be ongoing discussions,” Antongiovanni said. “The Insurance Commissioners continue to work toward a resolution of this critical issue, as does TAHU, our fellow agent organizations and other coalition partners.”
For more information about TAHU, visit http://www.tahu.org.
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About the Texas Association of Health Underwriters
A state chapter of the National Association of Health Underwriters, TAHU is a professional organization of agents and insurance company representatives aiming “…to inform and protect the consumer by enhancing the professional growth of its members.” Since its founding in 1930, there are now over 200 state and local chapters of the NAHU servicing the insurance needs of millions of Americans. More information can be accessed at http://www.TAHU.org.