Filed Under:Markets, Employee Benefits

CBO: Agent comp bill could add $1.1 billion to deficits

Agent Commission Chart from NAIFA Study, courtesy NAIFA
Agent Commission Chart from NAIFA Study, courtesy NAIFA

H.R. 1206 -- a bill that would get health insurance agent and broker compensation out of minimum medical loss ratio (MLR) calculations -- could cost the federal government about $1.1 billion from 2013 to 2022, according to budget analysts at the Congressional Budget Office (CBO).

The bill could increase federal spending by $447 million over that period, and it could cut federal revenue by $675 million, the analysts estimate in an H.R. 1206 budget impact report.

Producer groups have argued that customers are the ones who really pay commissions, and that insurers simply collect the commission payments as a courtesy to the customers. The groups have argued that insurers should leave producer compensation amounts out of PPACA MLR calculations.

H.R. 1206

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Nichole Morford

Nichole Morford
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