WASHINGTON, Sept. 11 -- The ranking member of the House Energy and Commerce Committee issued the following news release:

FYI - the Democratic Staff of the Energy and Commerce Committee released a fact sheet on the effects of H.R. 1206, Access to Professional Health Insurance Advisors Act of 2011.

The fact sheet is available below and also available online here.http://democrats.energycommerce.house.gov/sites/default/files/documents/HR%201206%20MLR%20bill%20Fact%20Sheet%209.11.12.pdf

September 2012

The Facts on H.R. 1206, Access to Professional Health Insurance Advisors Act of 2011

Committee on Energy and Commerce

Minority Staff

Premiums - Consumers have saved over $2 billion on health insurance premiums since the passage of the Affordable Care Act because of the medical loss ratio and rate review consumer protections that finally prioritized consumers.

H.R. 1206 will increase health insurance premiums because the bill:

1) Weakens downward pressure on premiums as insurers will not have to be as efficient,

2) Reduces premium rebates, and

3) Any increases in agent/broker commissions equals an increase in a person's health insurance costs.

Jobs - Agent and broker jobs increased, not decreased, by 7,000 since May of last year and by 3,100 since this past May while the medical loss ratio consumer protection was in effect, according to the non-partisan Insurance Information Institute.

H.R. 1206 does not guarantee any new agent or broker jobs but does benefit insurers at the expense of consumers.

Medical Loss Ratios - Nearly 90% of insurers today are meeting the current medical loss ratio consumer protection as agents and brokers continue to operate.

H.R. 1206 weakens a standard that nearly all insurers can already meet, allowing them to increase salaries, profits, and other administrative costs.

State Flexibility - Seven states received an adjustment to lower the 80/20 medical loss ratio requirement in their individual market after balancing the insurers' inability to meet the rule and the price of health insurance for consumers. Other states could not provide data that supported the need for an adjustment. There is little evidence to show that consumer access to agents and brokers has been reduced because of the medical loss ratio.

H.R. 1206 would reduce the $1 billion consumer premium rebates by at least $360 million, increasing premiums for 3.8 million people in Delaware, Florida, Indiana, Kansas, Louisiana, Michigan, North Dakota, Oklahoma, Texas, and Wisconsin.

Consumer Premium Rebates - Nearly 13 million Americans have received $1.1 billion in premium rebates because their insurance company failed to cap their administrative spending on things such as salaries, profits, and marketing at 15-20% of premiums.

H.R. 1206 could reduce premium rebates by 60%, according to professional staff at the National Association of Insurance Commissioners.

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