An [Aug. 8 IBJ.com] article reported that “five health insurers … have decided to stop selling individual health insurance policies in Indiana,” thanks to the new health law’s requirement that they spend no more than 20 percent of premiums on administration.
Not only are these “minimum medical loss ratios” destabilizing state insurance markets, thus leaving consumers with fewer choices, but they’re also putting insurance agents out of business. According to a recent survey, three-quarters of agents have seen significant reductions in their commissions as insurers attempt to comply with these onerous rules. More than one in five agents has had to cut jobs in response.
CEO, National Association of Health Underwriters