The Big “I" Government Affairs and Office of General Counsel developed a working memo regarding new health insurance compensation disclosure requirements that take effect on Dec. 27.
These new requirements are the result of government funding legislation signed into law last December.
This new provision will have a significant impact on health insurance agents, brokers and consultants because it
requires them to disclose compensation and other information to sponsors of group health plans subject to the Employment Retirement Income Security Act of 1974 (ERISA).
The act also requires health insurers to disclose to individual health insureds the compensation paid to the agent
or broker involved in the coverage selection and enrollment. While that part of the requirements does not directly
apply to agents or brokers, carriers may require agents and brokers to make disclosures on their behalf.
The Big “I" and certain other major producer groups have met with U.S. Department of Labor officials and submitted a joint comment letter to the federal regulators, but no regulatory guidance on disclosures relating to group health plans has been issued.
Agents and brokers who handle group health plans will still need to comply with the new requirements, even in the absence of additional guidance or regulations.
Click here to read the Big "I" memo that illustrates the new disclosure requirements.