December 8, 2017




In This Issue
Fast Facts
House and Senate Begin Conference on Tax Reform
Medical Loss Ratio Broker Bill Reintroduced in the House, Senate Companion Forthcoming
Compliance Cornered: ACA Employer Reporting Penalties Increase for 2018
Washington Update Podcast: Mending Differences on the Road to Tax Reform
One Week Left for Open Enrollment
Did You Miss Yesterday’s Compliance Corner Webinar on How to Respond to the IRS 226J Letter? Watch it Now!
Gift Yourself Capitol Conference and HUPAC Bowling this Holiday Season
Holiday Savings!
HUPAC Roundup
What We're Reading
E-mail the Editor
Visit the NAHU Website
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Medical Loss Ratio Broker Bill Reintroduced in the House, Senate Companion Forthcoming
On Wednesday, Representatives Billy Long (R-MO) and Kurt Schrader (D-OR) announced the introduction of H.R. 4575, which would remove broker compensation from the medical loss ratio (MLR) calculation in the individual and small group markets. This bill marks the fourth iteration of the broker bill in the Senate, and the first time that the House and Senate versions will be true companions with the same language to treat broker commissions as a pass-through expense. The Senate companion legislation is forthcoming and will be led by Senators Johnny Isakson (R-GA) and Chris Coons (D-DE). Along with the legislation, we are actively in discussion with Trump Administration officials to provide greater flexibility in interpreting the federal statute with regards to broker commission.

The MLR requirements were designed to limit how much insurance companies can spend on administrative costs. Unfortunately, the way the requirements were crafted, independent insurance agent and broker commissions are included as an insurer administrative cost. MLR requirements began on January 1, 2011, and immediately had devastating impacts on the insurance markets. This legislation would help correct the market and commission problems caused by the MLR requirements and improve consumer access to health insurance agents and brokers.

NAHU will be sending an Operation Shout on these bills shortly, and we encourage you to help spread the message of the importance of the legislation by contacting your representative and senators and asking them to co-sponsor and vote for these important reforms.
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