Wednesday, March 16, 2011

Health Insurance Brokers Update by Heleni Smith

Healthcare reform has many stakeholders beyond government and providers. Case in point-health insurance brokers. Insurance brokers are becoming more vocal about the possible ramifications that the Patient Protection and Affordable Care Act might have on them and are taking their trepidations to congress and state legislatures. Their main concern revolves around maintaining their commissions as well as guaranteeing a position in the new healthcare landscape. There is debate around the effect insurance brokers have on overall premiums. Brokers are hoping to play an integral part in the creation of health insurance exchanges which will take effect in 2014. States seem to be divided on this issue. Iowa and Minnesota have both introduced bills that safeguard the future of brokers, while Maryland and the District of Columbia are drafting bills that would negate the use of brokers. The National Association of Insurance Commissioners is lobbying legislation on the national level that would exclude brokers’ commissions from the new 20% cap on health insurance administrative cap.

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