Insurance brokers won a round in their battle over the future of sales commissions on Thursday when a key committee of state insurance regulators voted to endorse a controversial bill now before Congress.
The task force of the National Association of Insurance Commissioners said they would endorse the bill — sponsored by Rep. Mike Rogers, R-Mich. — which would remove sales agent fees from administrative costs insurers must report under a provision in the federal health law.
The endorsement still needs approval from the full executive committee of the NAIC, which last year recommended to federal officials that broker fees be included in the calculation of the so-called medical loss ratio. That recommendation was accepted. To remove broker fees from the calculation would take congressional action.