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| CMS Releases New FAQ on Broker Compensation |
Along with the Notice of Benefit and Payment Parameters, late last Friday CMS released an agent and broker compensation and discriminatory marketing FAQ resource regarding the differing of compensation based on the metal level plan sold. The letter directly addresses the issues of insurers reducing or eliminating broker commissions during the plan year, which NAHU has repeatedly brought to the attention of the Administration through multiple channels since this issue first arose. We have noted our concerns about insurers who are implementing mid-year compensation changes and the impact that this can have on consumers and market stability and advocated that CMS has the authority to enforce commission rates that were included in plans certified on the marketplace.
This guidance notes that CMS will not take enforcement action against insurers for failure to comply with the applicable Federal guaranteed availability provisions and QHP marketing standards with respect to agent/broker compensation arrangements until the issuer’s next opportunity to update rates. Therefore, this will not be enforced until April 1, 2017, in a small-group market in a state that permits quarterly rate updates and until January 1, 2018, in an individual or merged market. NAHU will continue to work with CMS on this and other issues related to discriminatory market practices effecting agent and broker compensation. |
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