The Medical Loss Ratio (MLR) has put health insurance agents through the ringer with their strict ruling of including agent commissions in the MLR. Third and fourth quarter of twenty-ten, advocates and lobbyist went to bat for the health insurance agents in Washington. The government insisted that the insurance agents were part of operating expenses. Most insurance companies had to reduce their ratio to meet the new government mandate. In directly, the commission for health insurance agents were slashed, leaving some dead in the water.
Health insurance agents were not the only one's hit by this MLR mandate. Hundreds, if not thousands of employees throughout the country had been laid off to meet this new mandate. This definitely did not help the unemployment rate. Many insurance agents were forced to leave the health insurance arena. This is sad news for business owners. Some of the experts were forced to retool to provide an income to their insurance agency; family.
Insurance agents have another at-bat to try to make changes moving forward into twenty-fourteen, when the law is in full-swing. There is still a glimmering hope now that some people in Washington believe that health insurance agents have a big role for businesses and individual/families due to the healthcare law. In March, a bill was proposed,
Access to Independent Health Insurance Advisor Act of 2013. As of today, April 1st, it has only been introduced and has not moved to the Senate. This could take some time. I know agents are hoping for a decision prior to 2014. This is the year the healthcare bill is fully implemented.
Health insurance agents will move on and conduct their business to stay in business. Some of them will move out of the industry faster than ever before. This is tough for some business owners because they cannot always trust someone they bring into their business to help them when there is a turnover of health insurance agents. Most business owners do not have time to deal with it themselves. They would rather work with a professional to get the job done.
This is why it is important for Washington to take a serious look at this bill introduced to help keep health insurance agents employed and continue to provide value to businesses across the country. Healthcare reform was full of 'fog', some might say. It is hard for a business owner to stay focused on their business and stay ahead of the healthcare curve when they don't truly understand the changes.
Butch Zemar
www.EliteBenefits.net