PIA Says Inclusion of Agents in House Healthcare Bill is Positive, But Concerns Remain

PIA Says Inclusion of Agents in House Healthcare Bill is Positive, But
Concerns Remain

SBA Provision, Antitrust Language, Federal Trade Commission Involvement Need
to be Addressed in Senate

WASHINGTON, Nov. 9 /PRNewswire-USNewswire/ -- Inclusion of a provision in the
Affordable Health Care for America Act (H.R. 3962) allowing insurance agents
to sell health policies offered by health insurance exchanges is positive, but
other issues remain to be addressed in the Senate, according to the National
Association of Professional Insurance Agents (PIA).

The language that guarantees agent participation, added at the insistence of
Blue Dog Democrats including former PIA member Rep. Charlie Melancon (D-La.),
was included in the final version of H.R. 3962 that passed 220-215 in the
House on November 7.

"The inclusion of this provision assures that no matter what, consumers will
continue to be able to rely on their local professional insurance agent to
help them navigate the maze of choices available, both inside and outside
these proposed health insurance exchanges," said PIA National President Jon D.
Spalding. "This provision needs to be preserved in the Senate."

PIA believes that other elements included in the House bill will have to be
fixed or removed in the Senate.

"We remain concerned with language added under a subsection entitled
'Assistance for Small Employers' that designates the Small Business
Administration (SBA) to design what is, in essence, a government-run insurance
agency for small businesses," said PIA Director of Federal Affairs Mike
Becker. "In the House bill, SBA is required to provide educational activities
to small businesses, along with distribution of information and 'enrollment
and plan selection assistance for employers' for health plans available under
the Health Insurance Exchange."

"In short, the SBA would be required to perform the functions of an insurance
agency or brokerage for small groups of under 100," Becker said. "PIA opposes
this provision because it is unnecessary and it has the federal government set
up insurance brokerages in competition with the private sector. Professional,
independent insurance agents and brokers already perform all of the services
for consumers that the bill would require the SBA to provide. The SBA
provision is unnecessary, duplicative and creates needless federal
expenditures."

PIA National has joined with a coalition of property/casualty insurers,
agents, brokers, and reinsurers to express concern with antitrust provisions
included in H.R. 3962. The proposed repeal of the McCarran-Ferguson limited
antitrust exemption for health and medical malpractice insurance would disrupt
the industry's business environment and create substantial legal uncertainty
and unnecessary litigation. In addition, a Congressional Budget Office (CBO)
analysis determined that modifying the federal antitrust exemption for health
and medical malpractice insurers "will have no significant effect" on premiums
charged for private health insurance.

"The antitrust provisions included in H.R. 3962 would have no benefit on
health insurance premiums, as the CBO reports, but would spur frivolous
litigation," Becker said. "No good would come as a result of these provisions,
only more costs and more litigation. We recommend the Senate address these
concerns by removing the antitrust provisions from their version of the bill."

As passed, H.R. 3962 would also permit the Federal Trade Commission (FTC) to
prepare studies and reports on the entire insurance industry, including
property and casualty. PIA said such a broad grant of authority has no place
in a bill addressing health insurance.

"Our healthcare system needs improvement - it costs too much for the quality
it delivers, too many people cannot afford coverage, if they can find it, and
they can lose it for getting sick," Spalding said. "Congress will probably
pass something that will be called healthcare reform. The challenge is to
build on the private system in a way that doesn't bankrupt Main Street, USA.
It is up to us to continue to lead the way for our lawmakers."

Founded in 1931, PIA is a national trade association that represents member
insurance agents and their employees who sell and service all kinds of
insurance, but specialize in coverage of automobiles, homes and businesses.
PIA members are Local Agents Serving Main Street America(SM). PIA's web
address is www.pianet.com.

This press release is online at:
http://www.pianet.com/NewsCenter/PressReleases/11-9-09-2.htm

SOURCE National Association of Professional Insurance Agents

Ted Besesparis of the National Association of Professional Insurance Agents,
+1-703-518-1352