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Excluding broker comp would cut MLR rebates

Excluding broker commissions from the medical loss ratio would have slashed the more than $1.6 billion in carrier rebates to consumers in 2011 and 2012 by about 75 percent.

By Kathryn Mayer | Updated on July 11, 2014
(AP Photo/Carolyn Kaster, File)

Excluding broker commissions from the medical loss ratio would have slashed the more than $1.6 billion in carrier rebates to consumers in 2011 and 2012 by about 75 percent, according to a report from the Government Accountability Office.

GAO found that rebates would have fallen from $1.1 billion to $272 million in 2011 if the commissions and fees carriers paid to agents and brokers had been excluded from the MLRs, and rebates similarly would have fallen from $520 million to $135 million in 2012.

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