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Big ‘I’ Provides Comments on New Health Insurance Compensation Disclosure Requirements

The Big “I" urged the Department of Health and Human Services to avoid any outcomes that formally or effectively apply these new mandates to agents and brokers.
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big ‘i’ provides comments on new health insurance compensation disclosure requirements

At the end of 2020, President Trump signed into law bipartisan legislation that included a $900 billion COVID-19 relief package and a $1.4 trillion omnibus government funding package.

As previously reported in News & Views, the omnibus government funding legislation included a section titled the No Surprises Act, which addresses surprise medical billing. This provision will have a significant impact on health insurance producers and consultants, requiring them to disclose their compensation and other information to group health plan sponsors.

The section also requires health issuers to disclose the compensation paid to the agent or broker involved in coverage selection and enrollment to individual health insureds. The Department of Health and Human Services (HHS) recently held a listening session, in which the Big “I" participated, regarding the implementation of the individual market agent and broker compensation requirements established by Section 202(c) of the No Surprises Act.

In addition to participating in the listening session, the Big “I" submitted comments to HHS regarding disclosure requirements that will apply in the individual market. In its comments, the Big “I" reiterated that Congress placed the Section 202(c) disclosure obligations for individual market plans exclusively upon health insurance issuers. Additionally, the Big “I" urged HHS to avoid any outcomes that formally or effectively apply these new mandates to agents and brokers. 

These new requirements take effect on Dec. 27, 2021. Earlier this year, the Big “I" provided a summary of the recently enacted health insurance compensation disclosure requirements.

While these comments to HHS focused on the individual market, the Big “I" intends to submit additional comments to the Department of Labor concerning disclosure requirements for agents and brokers in the group marketplace. The association will continue to provide additional information as the effective date approaches. 

Wyatt Stewart is Big “I" assistant vice president of federal government affairs.

15914
Thursday, July 29, 2021
On the Hill