House Dem rips new insurance rule  Rep. Robert Andrews  (D-N.J.) spoke to the NAHU about the effects of the Medical Loss Ratio on Agents.

With the Medical Loss Ratio in the new health care law 80%-85% of premium has to go to claims. That leaves just 20% for the insurance company to spend on administration. HHS chose to include broker compensation in the administration. On large cases this does not have a  major impact but on the individual market it has been devastating. The carriers have cut the commission by 50% for individual health insurance throughout the country.  This new commission structure has forced many agents to reevaluate their individual health insurance sales.

Rep. Andrews is the first pro health care reform politician to address this issue in favor of the brokers and agents.   For many health insurance agents the new law devalues the services that we provide to the individual health markets.

Here at Nefouse & Associates we continue to proved the very highest level of services for all our individual health insurance customers.