Senate Dem opposes brokers' MLR bill

Sen. Jay Rockefeller (D-W. Va.) is joining the chorus of healthcare reform allies calling on the nation’s insurance commissioners to oppose draft legislation that would exempt insurance agents from new restrictions on administrative spending. 

Under the healthcare reform law, health plans must spend an average of at least 80 percent of premiums on care or send a rebate check to customers for the difference. A Health and Human Services regulation lumps insurance agents and brokers into administrative expenses, but the National Association of Insurance Commissioners (NAIC) has proposed legislation that would count them toward care dollars.

Rockefeller urged the NAIC to keep the “medical loss ratio” (MLR) rule as is.

“I cannot support a proposal that would allow agents, brokers and health insurance companies to retain the estimated $1 billion in benefits that American consumers will receive next year thanks to the healthcare reform law,” Rockefeller wrote in an 11-page letter.

A number of liberal groups made the same plea to the NAIC on Tuesday.

Maine last week became the first state to receive an exemption from the MLR rule, and four other states have filed waiver applications.

Rep. Mike Rogers (R-Mich.) said he will introduce legislation that would protect agents and brokers, and several Democrats have expressed support.

Rep. Rob Andrews (D-N.J.) blasted the MLR regulations last month when he spoke to the National Association of Health Underwriters conference.

“You’re not a waster of time and money,” Andrews told the agents. “You’re a saver of time and money.”