The National Association of Insurance Commissioners urged federal lawmakers this week to make sure health insurance agents and brokers have a secure future as health care reform moves forward.
At its annual meeting, the NAIC passed a resolution asking that health insurance exchange "Navigators" — as appointed by the Affordable Care Act — assist consumers in their health care choices but still appropriately reflect the important role that licensed health insurance professionals play in health care purchases.
In 2014, under health reform law, exchange "navigators" will conduct public education and distribute fair and impartial information concerning enrollment in health plans and provide referrals for consumer assistance. However, as the NAIC points out, navigators are not "licensed and trained" insurance producers and are not authorized to engage in all activities that are appropriate for licensed producers.
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"Unless the activities and compensation of Navigators are carefully structured, this program could provide an avenue for untrained individuals to evade producer licensing requirements and expose consumers to harm."
The NAIC also wants licensed health professionals to be compensated fairly for the work they do. The Affordable Care Act requires insurance companies use 80 percent of small group and individual premiums and 85 percent of large group premiums on medical care, rather than administration or profit, which means — as the NAIC chose not to allow sales commissions to count as medical care — less money available to earn, especially in the small-group and individual markets.
The National Association of Health Underwriters praised NAIC for its support of health insurance agents and brokers:
"With the recent passage of federal health care reform, the health care system has become even more complex. Health insurance agents and brokers ensure that consumers and employers have access to an array of health insurance options," NAHU said in a statement. "They also serve as patient advocates, helping them find the most appropriate health insurance for their particular needs and budget.
"Health insurance agents and brokers also help consumers lower their overall health care costs. This role is especially important now in our tight economy with families struggling to make ends meet. NAHU looks forward to our continued work with the NAIC and other regulators in helping to curb the potential health care costs associated with the new federal reform while expanding consumer health care choices."
The resolution was sponsored by 25 states: Illinois, Maine, Florida, Kansas, Oklahoma, Louisiana, Alaska, New Hampshire, Utah, South Carolina, North Carolina, Nevada, Montana, Ohio, New Jersey, Kentucky, Missouri, Michigan, Connecticut, Tennessee, Washington, Delaware, California, New York and North Dakota.
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