October 22, 2010

Broker and agent fees to be included in the calculation of expenses

In what is being viewed as a setback for brokers and agents, the National Association of Insurance Carriers executive committee voted Thursday to endorse the proposed federal regulation guaranteeing loss ratios. National Association of Health Insurers, executive vice president of the National Association of Health Underwriters said sales commissions would be classified as administrative expenses. "That will put pressure on insurance companies to reduce commissions, making it more difficult for agents and brokers to perform the valuable services they now provide consumers." It is uncertain if HHS Secretary Sebelius will accept or deny the language outright.

Catch up on other healthcare related news in the October 22, 2010 NAHU Update.

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