WASHINGTON, D.C. September 20, 2012 The House Energy and Commerce Committee is expected to vote today on legislation (H.R. 1206) that would remove the commissions of health insurance agents from the medical loss ratio (MLR), a calculation that insurers must use to show the proportion of premiums they spend on providing health care to patients as opposed to salaries and other administrative expenses.
Following is a statement from Christopher W. Hansen, president of the American Cancer Society Cancer Action Network (ACS CAN):
The Affordable Care Act requires health insurance companies for the first time to spend a minimum share of premiums on providing health care to patients and to offer rebates to consumers if they fall short. H.R. 1206 would weaken this important patient protection by enabling insurers to spend less money on health care, resulting in higher premiums.
The law makes it clear that fees and commissions paid to insurance agents and brokers should be counted as administrative expenses that contribute to the cost of a health plan. For the medical loss ratio to be a meaningful measure of value to consumers, broker and agent fees must be included in the calculation as an administrative expense.
Insurance agents and brokers play an important role in helping people access health coverage. At the same time, consumers must have assurance that a minimum portion of their health care premiums are paying for the medical services they need. Lawmakers should reject this effort to weaken the law 's promise to improve the quality of insurance sold in the health care marketplace, and to empower consumers to make informed decisions about the best health plan for them.
ACS CAN, the leading voice of patients in the health care debate, is working to ensure that the Affordable Care Act is implemented as strongly as possible for cancer patients, survivors and caregivers. For more information, visit https://www.fightcancer.org/healthcare.
ACS CAN is the non-profit, non-partisan advocacy affiliate organization of the American Cancer Society, which is dedicated to eliminating cancer as a major health problem. ACS CAN works to encourage lawmakers, candidates and government officials to support laws and policies that will make cancer a top national priority. ACS CAN gives ordinary people extraordinary power to fight cancer. For more information, visit www.fightcancer.org.
FOR MORE INFORMATION, CONTACT:
Steven Weiss or Lauren Walens
American Cancer Society Cancer Action Network
Phone: (202) 661-5763 or (202) 661-5711
Email: [email protected] or [email protected]
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