Sens. Mary Landrieu (D-La.) and Johnny Isakson (R-Ga.) have introduced the Access to Independent Health Insurance Advisors Act of 2012.

The bill seeks to exempt agent compensation from the Medical Loss Ratio (MLR) formula by the Patient Protection and Affordable Care Act (PPACA). The Department of Health and Human Services (HHS) has ruled that agent compensation is a “non-claims” cost and subject to the MLR formula which mandates that at least 80 percent (individual and small group) or 85 percent (large group) of premiums collected by the carrier must be spent on “health care quality improvement.”

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