WASHINGTON—The chairman of the Independent Insurance Agents & Brokers of America says the association has not abandoned the fight to protect independent agents' role under federal healthcare reform.
Speaking here Friday at the conclusion of the IIABA's Legislative Conference and Convention, Chairman Bob Bramlett says the topic of healthcare was not at the top of agenda because, "As much as we would like to change it, PPACA (Patient Protection and Affordable Care Act) is the law of the land, and it has moved from the legislative to the regulatory phase."
He says important issues remain and the focus of IIABA is on implementation of the program and assisting in that effort to protect producers.
Exemplifying this effort is the Independent Insurance Agents of Iowa which received the 2012 Herndon Award for legislative achievement. The IIAI legislative efforts helped produced a law that puts "navigators"—individuals designated under PPACA to help buyers purchase health insurance—under state regulation and licensing. It also clearly defines the role of navigators in the process as opposed to the broader role of agents and brokers.
"This law is an example of what the Big 'I' wants to see in every state," says Bramlett.
He calls for a level playing field for everyone, adding that, as a consumer protection issue, navigators should not perform the same duties of agents.
"Your government affairs team is fighting to make sure that we, as agents, have a true and viable business role and are fairly compensated for the work that we will do in these exchanges," says Bramlett.
Bramlett says that his agency, The Bramlett Agency in Ardmore, Okla., for which he is president and CEO, knows first-hand the adverse effects of PPACA. Employee benefits accounts for 33 percent of his agency's business and they are feeling the impact of reduction in commission under the medical loss ratio mandate.
The act requires health insurers to spend 80 percent under small plans and 85 percent under large plans of premium dollars on health care services and quality of improvement. To achieve that spending goal, insurers are cutting agent's commissions.
To ensure agents receive fair compensation, Bramlett says the IIABA is working in some states to allow agents to charge a fee in addition to commission "as long as that fee is totally disclosed and transparent."
"The Big "I" will continue to work with our state associations, HHS (Health and Human Services), the state insurance departments and umbrella groups—NAIC (National Association of Insurance Commissioners) and NCOIL (National Conference of Insurance Legislators)—to try to limit the negative impact on agents as the roll-out of this law continues," says Bramlett.
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