NAHU represents licensed health insurance agents, brokers, consultants and benefit professionals who serve the health insurance needs of employers and individuals seeking health insurance coverage.
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Medical Loss Ratio

The MLR requirements were designed to limit the amount that a health insurance company can spend on administrative costs. Specifically, the MLR requirement states that 80% of all premium dollars must go to medical care, with the remaining 20% going to administrative costs. While NAHU agrees with the goal of providing consumers with more value for healthcare dollars spent, the PPACA MLR requirements significantly and negatively impact access to health insurance agents and brokers by wrongfully including agent and broker commissions in with administrative costs, at the very time our economy is the weakest and health insurance purchasers have the most need for help. Bi-partisan legislation has been introduced into the 113th Congress by Senator Mary Landrieu (D-LA), with co-sponsors Mark Begich (D-AK), Johnny Isackson (R-GA) and Lisa Murkowski (R-AK) to remove independent health insurance agents and brokers from PPACA’s Medical Loss Ratio requirements.

NAHU has supported the reintroduction of S. 650 and H.R. 2328, Access to Independent Health Insurance Advisors Act of 2013, bi-partisan bills that would remove agent and broker compensation from the Medical Loss Ratio requirement. Senator Mary Landrieu (D-LA) once again introduced the bill in the Senate and Representatives Mile Rogers (R-MI) and John Barrow (D-GA) reintroduced the bill in the House of Representatives. Both Senator Landrieu and Representative Mike Rogers issued a letter to Secretary of the Department of Health and Human Services Kathleen Sebelius highlighting the negative impact of the MLR on the country’s health insurance agents and brokers. Chairmen of the House Ways and Means Committee Dave Camp (R-MI) and Chairmen of the House Energy and Commerce Committee Fred Upton (R-MI) also sent a similar letter to Secretary Sebelius.


NAHU’s Issue Summary on MLR
NAHU has developed an issue summary highlighting the negative impact MLR has on independent health insurance agents and brokers.

Myths and Realities of PPACA’s Medical Loss Ratio Requirements

Economic Impact of MLR
This paper examines exactly how the Medical Loss Ratio requirements of PPACA impact independent health insurance agents and brokers.

NAIC Resolution on MLR

NAHU Comments on MLR

MLR Impact on Jobs
The Medical Loss Ratio requirement has resulted in a lack of consumer access to health insurance agents and brokers.

MLR Impact on Businesses
NAHU surveyed over 2,000 brokers on how the MLR has affected their business.

GAO Report on the Medical Loss Ratio

MLR Rebate Checks: A Case Study on Rebate Distribution to Employer Group Plan Participants

MLR Rebate Checks: An Overview for Advising Employer Group Clients