Sep 15, 2021
The Administration issued a proposed Rule that addresses disclosures of broker compensation and air ambulance fees. The Proposed Rule is related to the No Surprises Act.
Carriers that offer individual health insurance coverage or short-term limited duration health plans (STLDIs) would have to make certain disclosures to policyholders. These include commission rates and compensation structures for the compensation they provided to the agent or broker who was associated with enrolling the policyholder. They must make these disclosures before finalizing plan selection. They must also include these disclosures in documentation confirming the individual’s enrollment.
According to Health Affairs, direct compensation would include sales and base commissions that the carrier pays to an agent or broker for the sale, placement, or renewal of individual health insurance coverage or STLDI. They would also have to report indirect compensation, such as service fees, consulting fees, awards, prizes, and other non-monetary compensation.
The proposed rule would require issuers to report to HHS direct and indirect compensation they paid to the agent and broker for the preceding year. These requirements will apply beginning on December 27, 2021.
While these requirements apply to insurers, agents or brokers could make the disclosures on an insurer’s behalf by attaching a commission schedule and other information or providing a link to the information.
The proposed rule would also require plans, issuers, and providers of air ambulance services to submit data for each air ambulance claim and transport for the two years covered by the reporting requirements in the No Surprises Act.
October 18, 2021 is the deadline to submit written comments on the proposed rule.
