From the Desk of Allison Johnson - Transparency and Health Insurance- What You Need to Know
(Posted on 02/23/21)
This has been the year that introduced us to a million new acronyms- COVID, FFCRA, PPP, CARES, and now the newest one- CAA. The Consolidated Appropriations Act of 2021 encompasses several important updates that will impact our industry, one of which is transparency.
The CAA addresses four different areas of transparency- Price and Quality information, Broker Compensation, Mental Health Parity, and Pharmacy Costs.
Although these rules have yet to be finalized, we do have some information on what will be required from us effective 12/27/20, barring any changes. Brokers and Consultants will be required to provide written disclosures of compensation and services provided. Thankfully, a recent update to Benefix includes a commission disclosure for all of the standard carriers, so when you download the Martin proposal for your quote, that is already included.
We expect that there will be additional guidance issued on what exactly needs to be said in the formal disclosures. NAHU will be issuing templates on their website that you can download if you are a member. All in all, the broker compensation piece of this package shouldn’t be too much of an adjustment. As for the rest of it, we will continue to monitor the rules and update you as guidance is issued.
Sources-
NAHU Webinar, Consolidated Appropriations Act of 2021, 1/21/21
The CAA addresses four different areas of transparency- Price and Quality information, Broker Compensation, Mental Health Parity, and Pharmacy Costs.
Although these rules have yet to be finalized, we do have some information on what will be required from us effective 12/27/20, barring any changes. Brokers and Consultants will be required to provide written disclosures of compensation and services provided. Thankfully, a recent update to Benefix includes a commission disclosure for all of the standard carriers, so when you download the Martin proposal for your quote, that is already included.
We expect that there will be additional guidance issued on what exactly needs to be said in the formal disclosures. NAHU will be issuing templates on their website that you can download if you are a member. All in all, the broker compensation piece of this package shouldn’t be too much of an adjustment. As for the rest of it, we will continue to monitor the rules and update you as guidance is issued.
Sources-
NAHU Webinar, Consolidated Appropriations Act of 2021, 1/21/21