The National Association of Insurance Commissioners, Washington, D.C., recently approved a medical loss ratio reporting blank that contains broker commission costs into the administrative expense total – and brokers are reacting.
Based on the new requirements, administrative costs are limited to 15 percent for large plans and 20 percent for individuals and small groups. Starting in 2011, insurers that do not follow these provisions must issue refunds to those covered in their plans.
Though Alan Katz, principal of the Alan Katz Group, Los Angeles, isn't pleased with the NAIC's recent move – and never believed exempting commissions from the MLR would get far – he does not expect a complete solution anytime soon. Like many provisions of the Affordable Care Act, the new commission requirement is under examination.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
