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U.S. Congress in Recess; Big Issues Remain to be Addressed | | |
 Congress broke for a recess for the fall elections on Sept. 30, after passing a short-term CR, (continuing resolution, or financial authority for government operations) that will keep the government open and operating until Dec. 3. The "lame duck" (post-election session) starts Nov. 15th with intense debate expected over what to do about the income, capital gains and dividend tax rates that automatically change on 1/1/11. The current rates, set in 2001 will "sunset" (expire) unless Congress intervenes. The debate focuses on whether to extend the rates for all taxpayers or only for those below the top two income brackets.
Issues like repeal/modification of the 1099 reporting provision in the healthcare reform legislation (PPACA) and the estate tax could be addressed in the 111th Congress; however, other "big initiatives" like recommendations from the report of the Deficit Reduction Commission, due by Dec. 1st, likely will not be addressed before the end of the 111th Congress between Nov. 15th and Dec. 31st according to NAIFA lobbyists.
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Healthcare Reform: Should MLR Calculations Exclude Agent Commissions? |
 NAIFA and NAIFA-Texas are among industry agent groups urging regulators to keep agent and broker commissions from medical loss ratio (MLR) calculations that are part of the new federal healthcare reform legislative package.
Insurers tend to include commissions in the premium total for individual and small group health insurance customers, but they pass 100% of the cash on to the producers as payment for enrollment services, administrative services, COBRA assistance, and, often, claims assistance, said Tom Currey, 2009-2010 NAIFA President, in a letter to TDI Commissioner Mike Geeslin.
"This practice is a health plan consumer convenience, eliminating the need for businesses and consumers to prepare, mail and track separate payments to their benefits specialists," according to NAIFA, NAHU and IIABA, in a joint comment letter to the National Association of Insurance Commissioners (NAIC).
The minimum percentage of revenue going to medical costs and quality improvement efforts is supposed to be 85% for large plans and 80% for individual and small group policies. Insurers that miss these marks are required to compensate their customers by providing rebates. Minimum MLR and rebate calculations are topics of intense debate at present.
Currey not only urges the Texas Insurance Commissioner to support the model of allowing commissions to be collected and paid by companies as a "pass-through" item but also asks that the Commissioner allow carriers to stick with their current MLR standards for 2011 and provide carriers sufficient time for "a smoother transition from the way health insurance is handled in Texas now to how it will be handled beginning in 2014," the year the health insurance exchanges are expected to be fully operational. |
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Update: Individual Mandate Provision of PPACA Ruled Constitutional | |
A Federal court judge ruled Oct. 7 that Congress has the authority to enact the individual mandate provision of The Patient Protection Affordable Care Act (PPACA) which requires consumers to purchase health care insurance or pay a penalty for failing to do so.
Judge George Steeh of the U.S. District Court for the Eastern District of Michigan, Southern Division, held that the mandate is supported by Supreme Court precedent and Congress' power under the Constitution's commerce clause. The judge further ruled that the PPACA "regulates a broader in terstate market in health care services... one created by the fundamental need for health care and the necessity of paying for such services received."
Plaintiffs in the case, the Thomas More Law Center, Ann Arbor, Mich., argued that "Obama Care is one of the most oppressive measures in the history of our Nation... was passed by Congress despite overwhelming opposition of the American people... was not about reforming health care, but a governmental seizure of unprecedented power over our lives." The Law Center's senior trial counsel commented that the "decision is ripe for appeal, which we intend to do expeditiously."
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| TDI Update: Medicare and Prescription Drug Plan Bulletins | | |
Three Texas Department of Insurance Commissioner's Bulletins impacting agents and insurers engaged in the marketing and selling of certain Medicare plans and prescription drug plans were issued October 11. Please see the below links to view the Bulletins -- #B-0041-10, # B-0042-10, and #B-0043-10 -- in their entirety.
Medicare http://www.tdi.state.tx.us/bulletins/2010/cc38.html
Medicare Marketing http://www.tdi.state.tx.us/bulletins/2010/cc39.html
Medicare Related Products/Agent Guidelines http://www.tdi.state.tx.us/bulletins/2010/cc40.html
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Role of Agents Defended by National Small Business Association | | |
Todd McCracken, president of the National Small Business Association, Washington, says the NAIC (National Association of Insurance Commissioners) Exchange Subgroup should think about how agents will fit into the SHOP (Small Business Health Options Program) exchange system for small businesses.
If agents are not part of the system, "who will assist employees in answering questions or making changes to their policies?" McCracken asks. "How will other products in the commercial market interplay with an exchange, such as Section 125 plans, COBRA administration, health savings accounts, health reimbursement accounts, flexible spending accounts and wellness programs? In the current market, health insurance agents or brokers provide this and many other services to small businesses. Therefore, model language and the state establishment of exchanges should carefully contemplate the benefits of agents to small businesses and how all the actors and products small businesses engage can interact in the exchange."
NAIFA partner, National Association of Health Underwriters (NAHU) in Arlington, Va., has also argued that state agencies setting up exchanges should promote the participation of licensed agents and brokers in advising exchange participants. "All successful state-level private purchasing pools and exchanges have elected to utilize the services of agents and brokers for this reason," NAHU says in a comment submitted to the Exchanges Subgroup. "Those that did not do so initially, like the Health Insurance Plan of California, quickly found that the active participation of licensed agents and brokers was the key to the pool's enrollment success."
The Exchange Subgroup has been seeking comments on a draft of the American Health Benefit Exchange Model Act that will be used to distribute subsidized individual coverage, and a system of Small Business Health Options Program (SHOP) exchanges to distribute subsidized small group coverage. The exchanges are supposed to go into operation in 2014.
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Texas Agents Join Forces to Launch Health Insurance Coalition | | |
Three insurance producer groups have joined forces to form the Texas Coalition of Health Insurance Agents to monitor, respond to and communicate on the implementation of the Patient Protection and Affordable Health Care Act (PPACA) in Texas. Coalition members include the Texas Association of Health Underwriters (TAHU), the Independent Insurance Agents of Texas (IIAT) and the National Association of Insurance and Financial Advisors-Texas (NAIFA-Texas).
The coalition will work to maintain freedom for consumers and agents so they can continue to work together to locate and acquire all forms of health insurance. Coalition representatives will participate in Texas Department of Insurance hearings and legislative proposals for implementing the PPACA. "The PPACA does not simplify the world of health insurance, it complicates it," said IIAT Executive Director David VanDelinder. "Agents are more necessary to consumers than ever before and the coalition wants to be sure that agents continue to have a role in the market."
TAHU's Lee Manross commented on the need for the new coalition. "Both regulatory and legislative changes as a result of the PPACA will be coming at us quickly. We need to be able to respond on behalf of all health agents to ensure the agents' role in the system is preserved." Lee Loftis, IIAT's director of governmental affairs, added that communication to agents is also vital. "We need to speak to our members with one voice so all agents are getting the same message," he said.
"Many groups and people will be vying for attention in the debate over the implementation of this law. We want to be sure our members have a voice and this consolidated effort will make sure they are heard," said Des Taylor, CEO of NAIFA Texas.
For inquiries regarding the Texas Coalition of Health Insurance Agents, contact Lee Loftis at lloft@iiat.org or 800.880.7428.
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About the coalition
The Texas Coalition of Health Insurance Agents is comprised of three Texas insurance producer groups. Coalition members include the Independent Insurance Agents of Texas (IIAT), the National Association of Insurance and Financial Advisors-Texas (NAIFA-Texas) and the Texas Association of Health Underwriters (TAHU).
The Independent Insurance Agents of Texas is the nation's largest state association of Trusted Choice® agencies. IIAT represents approximately 1,900 agencies and more than 15,000 agents and insurance professionals. Trusted Choice® independent agents represent multiple insurance companies. Since they are not employees of any single insurance company, they are advocates for insurance consumers helping them comparison shop for cost-effective and customized coverage.
Founded in 1925 as the Texas Association of Life Underwriters, the National Association of Insurance and Financial Advisors - Texas comprises 26 local associations representing the business interests of more than 3,000 members statewide. Members focus their practices on one or more of the following: life insurance and annuities, health insurance and employee benefits, multi-line and financial advising and investments.
TAHU is a state affiliate of the National Association of Health Underwriters (NAHU). TAHU is a professional organization of agents, employee benefit professionals and insurance company representatives who have adopted a priority mission for their clients to inform and protect them by enhancing the professional growth of its members. NAHU represents more than 20,000 professional health insurance agents and brokers nationally who service the insurance needs of millions of Americans.
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Alan Kifer / Local Associations Across Texas Continue to Push the PAC | | |
Alan Kifer (NAIFA-Houston member/Capitol PAC contributor/speaker) continues his trek to local associations in Texas to talk to fellow members about PAC contributions that provide campaign contributions to office holders/candidates who support the important role of insurance
and financial advisors.
NAIFA-Austin is following up its September meeting that featured Kifer with a mailout and phonathon. The attendance of several candidates, legislators and staff at San Antonio's September meeting prompted a call to a local television station that covered the event. Click here to view the news clip.
Kifer will continue to present his "Put Your Forks Down and Listen" presentation at locations listed below. Check out, and attend one of these scheduled meetings:
- October 13: NAIFA-Waco Luncheon at Gratiano's Restaurant
- October 14: NAIFA-Houston Luncheon at Houston Racquet Club
- October 26: NAIFA-Fort Worth Luncheon at Ridglea Country Club
- October 28: NAIFA-Dallas Luncheon at Prestonwood Country Club
- November 9: NAIFA-Upper Valley Luncheon at McAllen Country Club
- December 9: NAIFA-Great South West Luncheon at Shady Valley Golf Club in Arlington
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Eight Texas Managers / Agencies Qualify for 2010 MMA Award | | |
NAIFA's 2010 Manager's Membership Award (MMA) winners were recently recognized at the 2010 NAIFA Career Conference and Annual Meeting held in Seattle, September 11-14.
Eight Texas managers/agencies were recognized:
- Joseph Radovic - Ackley Financial Group, Inc./Penn Mutual in Addison
- David Ayres - Ayres Financial Group in Dallas
- Charles Tait Cruse - Northwestern Mutual/The Texas Financial Group in Dallas
- A. Andra Grava - Union Central Life Insurance Company in Dallas
- Brian Petrando - Northwestern Mutual/Texas Financial Group in Fort Worth
- Jeff Reeter - Northwestern Mutual/The Texas Financial Group in Houston
- Mark Koskovich - New York Life in Dallas
- Kelly Dickson - Farm Bureau Insurance of Wharton County in Wharton
The NAIFA Manager's Membership Award recognizes organizations that support a strong financial services industry by investing in NAIFA and its efforts. Life, health and multi-line agencies and financial groups are encouraged to receive this award by ensuring that a certain percentage of their agents, based on the organization's size, are NAIFA members.
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July 21-24, 2011
2011 NAIFA-Texas Career Conference/Annual Meeting at NASA Clear Lake | | |
NAIFA-Texas President-Elect Stephen Ehlers LUTCF has announced that the 2011 NAIFA-Texas
Career Conference and Annual Meeting will be held July 21-24, 2011 at the Hilton Houston NASA
Clear Lake.
Building upon the just completed NAIFA Career Conference and Annual Meeting in Seattle, the theme will be "UP to the Mission; DOWN to Business" which is what NAIFA is all about: "Keeping agents in business."
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September 10-14, 2011
NAIFA 2011 Career Conference & Annual Meeting / Meet U.S. Lawmakers | |
 Have you ever wanted a close up view of the tough Congressional issues that directly affect your family's way of life, your occupation, the future?
How can an agent from Texas influence the process - make a difference?
Mark your calendar, and make plans to attend the NAIFA 2011 Career Conference & Annual Meeting in Washington, D.C. where there is training to improve your bottom line and opportunity to meet members of the Texas Congressional Delegation. Your U.S. Senators and Representatives need to see and hear you in person in their offices.
Don't miss this opportunity to go to Washington, D.C.
and make a difference in 2011!
Click here to view photographs from NAIFA 2010 Career Conference & Annual Meeting in Seattle.
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Put NAIFA Membership Logo to Work for You | | |
As Public Relations Chair for NAIFA-Texas, Stella Castaneda asks every NAIFA member to put the NAIFA logo to work for you on business cards, letterhead, email signatures, office window/door, etc. This will let clients and business associates know that you are a professional agent who belongs to the largest national association for insurance and fianancial advisors which promotes professional standards and education along with advocacy and good public policy. Check out the logo choices below, and follow the directions to download your membership logo today.
- Click here to go to NAIFA membership logos on the NAIFA website.
- Sign in with your membership number and last name.
- Click the blue arrow and you will see 4 choices for membership logos (pictured below).
- Scroll down for instructions to add your join date and download membership logos.
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| 2010 Platinum and Gold Sponsors | | |
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