Consumer advocates, other watchdog groups urge congress to leave broker regs alone

Dec 8 2011

The organizations want Congress to maintain the medical loss ratio rule's current classification of broker fees as administrative expenses. Also in the news, during a Tuesday hearing, House Republicans attacked the work of an economist Democrats have quoted in an argument related to the health law's tax credits.

CQ HealthBeat: Advocates Urge Congress To Leave Broker Regulations Alone
Advocacy groups, labor unions and consumer watchdogs are urging lawmakers to continue to consider insurance broker fees as administrative expenses under the health overhaul law's medical loss ratio rule. This tug of war over whether broker fees should be considered administrative or medical expenses resurfaced last week when in a close vote the National Association of Insurance Commissioners (NAIC) decided to urge Congress to pass legislation on the matter. NAIC members did not endorse a specific bill, but their resolution urged lawmakers to adopt a measure that would "preserve consumer access to agents and brokers exempt broker and agent fees from the MLR rule" (Bunis, 12/6).

Politico Pro: GOP Charge Gruber With Reform Conflicts
House Oversight and Government Reform Committee Republicans on Tuesday attacked the work of an economist Democrats have quoted in an argument over the health care law's tax credits. They are suggesting that MIT economist Jonathan Gruber's analysis may have been skewed because he consulted with the Obama administration on the law. In a 12-page letter to committee Democrats, committee Chairman Darrell Issa and health subcommittee Chairman Trey Gowdy write that Gruber "often failed to disclose -; despite his legal requirement to do so -; that he was under contract with the [Obama] administration while he was advocating for the President's health care law" in the media (Feder, 12/6).