The Supreme Court Rules on the Affordable Care Act: What It Could Mean for Insurers
8. The Law Hurts Agents & Small Insurers
The PPACA's MLR [medical loss ratio] provisions threaten the livelihoods of health agents and brokers and establish perverse incentives that make it challenging for smaller insurers to enter the marketplace. These MLR requirements have produced cuts in agent compensation of up to 50 percent in some areas of the country and made it a challenge for many agents to maintain the level of customer service and quality of advocacy traditionally provided at a time when such assistance is needed more than ever.
— Charles Symington, SVP of government affairs, Big "I"