HHS made the decision even though the NAIC narrowly adopted a resolution via conference call Nov. 22 asking HHS to take “whatever immediate actions are available” to release agents and brokers from medical MLR strictures enacted under the 2010 healthcare reform act.

The MLR limits administrative costs as a percentage of healthcare premiums to 15 percent for large groups and 20 percent for small group and individual policies.

Agents have been trying to exclude their commissions from these administrative-cost restrictions.

The MLR rules took effect Jan. 1, but the final rule and interim final rule makes modifications and provides certainty on how the MLR is calculated, HHS says.

Symington says the IIABA was “extremely disappointed” that HHS “completely ignored” the NAIC resolution.

“This relief is essential in order for consumers to have continued access to the professional services of agents and brokers,” Symington says.

He adds it was the IIABA's understanding that the Obama administration looked to state-insurance regulators for expertise on this issue.

“For this final regulation to have been issued with no changes to the treatment of agent compensation so quickly on the heels of the NAIC's resolution is surprising and will not only harm our thousands of small-business owners but most importantly the consumers they serve,” Symington says.

Symington's comments were based on a legal analysis by Wes Bissett, IIABA senior outside counsel.

Bissett says the NAIC “perspective on MLR issues is vitally important and relevant,” especially since the PPACA empowers the organization to determine (subject to HHS's certification) how the MLR calculations should be performed.

Janet Trautwein, CEO of the National Association of Health Underwriters, joins Symington's request for legislative action. “We now call on Congress to heed the NAIC's recommendations and pass H.R. 1206,” she says.

The bill was introduced earlier this year by Rep. Mike Rogers, R-Mich., and John Barrow, D-Ga. It would exclude agent and broker compensation from the MLR calculation and provide state-insurance regulators with greater flexibility with MLR implementation.

Trautwein notes that the NAIC “was specifically charged by Congress to craft MLR guidelines for PPACA.”