WASHINGTON, D.C.—Chairman John D. (Jay) Rockefeller IV today released the following statement after the National Association of Insurance Commissioners (NAIC) voted by a margin of 26-20 to support exempting health insurance agents and brokers fees from one of the health care reform law’s most important consumer protection provisions   Under this so-called “medical loss ratio” law, which Chairman Rockefeller championed during the debate over health care reform, insurers are required to spend at least 80 percent of their customers’ premium dollars on providing health care and improving quality of care.    

According to NAIC’s own health insurance experts, exempting agents and broker fees from the medical loss ratio calculation will allow insurance companies to retain billions of dollars that current law requires them to give back to consumers in the form of rebates or lower premiums.  A May 24, 2011, Senate Commerce Committee Staff Report provides an analysis of NAIC’s data.

A letter Chairman Rockefeller sent yesterday to NAIC President-Elect Kevin McCarty expressing his concerns with the NAIC resolution can be found here.

“I am disappointed that a small majority of insurance commissioners have lined up with special interests today rather than consumers,” Rockefeller said.  “According to the NAIC’s own analysis, the exemption for agents and brokers fees will cost American consumers more than $1 billion dollars in rebates they are due to receive in the Spring of 2012. This decision puts corporations ahead of consumers – taking money out of the pockets of consumers and putting it in the hands of greedy insurers.”  

“Millions of individuals and small business owners are already paying too much for their health insurance; getting them some much needed relief should be our top priority.  I find it hard to believe that the NAIC endorsed allowing the health insurance companies to keep this rebate money as profit and am hopeful this new effort to undermine consumer protections will not be any more successful than earlier efforts.”

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