Monday, February 20, 2012

Consumer Groups HAVE it WRONG!

My email:

I am sorry, but I had to address your grassroots campaign to undermine HR 1206
and S 2068. Do you realize that the bill is referring to Agents and Brokers?
The small businesses of the Nation, that do not work for insurance companies,
but indeed work for consumers. That consumers will lose without the help and
direction of the Agents and Brokers. That Agents and Brokers make on average 5%
for all of the services we provide to the consumers of the United States. Our
commissions are included in the premium and merely a pass through and SHOULD NOT
and ARE NOT administrative charges. In Louisiana, we have 10,000 licensed
Agents in Louisiana, where do you propose they work, when you put them out of
The response:


Thank you for writing to us. We understand your concern and we recognize
the value that you and other brokers bring to consumers.
However, many consumers also need better value in their health insurance.
We strongly believe that the Medical Loss Ratio rule, as currently enacted,
allows insurers to increase value while continuing to pay brokers fair
compensation. If there are cuts to brokers compensation, that is the insurance
company's decision.

Additionally, removing broker compensation from the calculation would not
ensure that health insurance companies maintain broker compensation at a given
level, the proposed legislation would simply remove producer compensation from
the equation and take the heat off of insurers to increase value.
Furthermore, there are numerous insurers that currently meet the 80% MLR

As you might have noticed in the messaging of our action alert, we see this
as an attempt by insurers to keep business as usual. Ultimately, we have a
responsibility to consumers who tell us regularly that costs are their number
one concern. We have to look at the potential loss of refunds or lower premiums
for consumers and we see these bills as a bad deal for small businesses and
people who buy coverage on their own.

Again, thank you for writing to us.

M. Blake Hutson
Office: (512) 651-2926

Ronnell Nolan

No comments:

Post a Comment