Tags: Obamacare | Consumers | Insurance | Agencies

Expert: Obamacare Hurts Consumers, Insurance Agencies

Friday, 13 Jan 2012 08:08 AM

Robert Miller, president of the National Association of Insurance and Financial Advisors (NAIFA) says that one of the lesser-known rules of Obamacare amounts to a pay cut for insurance agencies that has reduced the help with claims that these agents provide.

"If you've never heard of the law's medical loss ratio (MLR) provision, you're certainly not alone," Miller writes in The Christian Science Monitor.

"This simple calculation has had the effect of radically reducing what health insurance agents earn," thus also restricting their ability to help million of Americans “navigate the maze of approvals needed for medical procedures and processing claims.”
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The MLR provision, Miller explains, requires insurers to dedicate at least 80 percent of individual and small group premiums and 85 percent of large group policies received to medical-or quality-improvement expenses, causing agents — whose median income was less than $50,000 a year before the law begab — to cut both services and support staff.

“As agents deal with the consequences of the MLR, many are finding that the cost of servicing clients now exceeds their income,” says Miller.

The Sacramento Bee reports that The American Center for Law and Justice (ACLJ) has urged the U.S. Supreme Court to accept its case in a challenge to Obamacare, saying the ACLJ lawsuit is separate and distinct from other challenges pending before the court because it includes a claim that the individual mandate, which forces Americans to purchase health insurance or pay annual penalties, violates the rights of two of its clients who oppose health insurance on religious grounds.

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