Big ‘I’ Comments on New Health Care Legislation

This week, the Big “I” joined other producer groups to comment on draft legislation previously released in the U.S. Senate Committee on Health, Education, Labor, and Pensions by Chairman Lamar Alexander (R-Tennessee) and Ranking Member Patty Murray (D-Washington).

The “Lower Health Care Costs Act of 2019” is aimed at reducing health care costs and includes five sections that would address surprise medical billing, reduce the prices of prescription drugs, create more transparency, boost public health and improve the exchange of health IT. Notably, the transparency section includes a provision (Sec. 308) that would require disclosure of direct and indirect compensation for brokers and consultants to employer-sponsored health plans and enrollees in plans in the individual market. The letter the Big “I” sent focused on this section.

While the Big “I” supports transparency in the health insurance market, the association expressed concern that this section could be duplicative and burdensome and noted that under ERISA, insurance carriers that provide plans for groups over 100 already provide information about agent compensation in Form 5500.

The Big “I” also noted that some of the Sec. 308 requirements for disclosure agent and broker compensation already exist at the state level. State regulation of insurance provides oversight of agents and brokers, including licensure laws that require a disclosure of compensation to the client, as well as additional laws in each state that further specify the details of those disclosures.

Visit the Senate website for more information, including the legislation by section, one-page summaries of each section and the actual draft legislation. The Senate Health Committee plans to mark up this legislation by the end of June.

Wyatt Stewart is Big “I” senior director of federal government affairs.