II 

113TH CONGRESS 

1ST SESSION S. 650 

To amend title XXVII of the Public Health Service Act to preserve consumer 

and employer access to licensed independent insurance producers. 

IN THE SENATE OF THE UNITED STATES 

MARCH 21, 2013 

Ms. LANDRIEU introduced the following bill; which was read twice and 

referred to the Committee on Health, Education, Labor, and Pensions 

A BILL 

To amend title XXVII of the Public Health Service Act 

to preserve consumer and employer access to licensed 

independent insurance producers. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Access to Independent 

5 Health Insurance Advisors Act of 2013’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds the following: 

8 (1) Licensed independent insurance producers 

9 (agents and brokers) provide a wide range of serv10 ices for both individual consumers and the business 


rfrederick on DSK6VPTVN1PROD with BILLS
2 

•S 650 IS

1 community. Producers interface with insurers, ac2 quire quotes, analyze plan options, and consult cli3 ents through the purchase of health insurance. 

4 (2) Licensed independent insurance producers 

5 provide guidance regarding benefit and contribution 

6 arrangements to ensure compliance with applicable 

7 State and Federal laws and regulations; assist with 

8 establishing section 125 plan tax savings under the 

9 Internal Revenue Code, health reimbursement ar10 rangements, flexible spending arrangements, evalu11 ating and securing small business tax credits as pro12 vided in the Patient Protection and Affordable Care 

13 Act, and other programs to maximize tax advantages 

14 and ensure compliance with applicable Internal Rev15 enue Service guidelines; create educational materials 

16 and provide on-site assistance to aid in employee 

17 benefit communication; assist in managing eligibility 

18 for new hires and terminated employees; provide ad19 vocacy for employees through the health insurance 

20 claim process; and advocate for employers with in21 surers in developing proposals, renewals, and for 

22 service issues throughout the year. 

23 (3) In order to meet these responsibilities, li24 censed independent insurance producers are required 

25 to complete continuing education on an ongoing 


rfrederick on DSK6VPTVN1PROD with BILLS
3 

•S 650 IS

1 basis in order to maintain appropriate licenses. This 

2 requirement to maintain educational standards helps 

3 assure the insured public that producers remain cur4 rent with the ever-evolving insurance market. 

5 (4) It is essential that licensed independent in6 surance producers continue to perform these duties, 

7 and others, as the Patient Protection and Affordable 

8 Care Act has made significant changes to the regu9 latory environment for health plans. To understand 

10 these changes, employers and consumers will need 

11 professional guidance even more in the future. This 

12 service is especially important for small businesses, 

13 as such producers often fill the role of a human re14 sources department as well as professional consult15 ant. 

16 (5) The National Association of Insurance 

17 Commissioners (NAIC), whose core mission is to 

18 protect consumers in all aspects of the business of 

19 insurance, strongly advocates for the continuing role 

20 of licensed independent insurance producers in 

21 health insurance, and has expressed that the ability 

22 of insurance agents and brokers to continue assist23 ing health insurance consumers at a time of rapid 

24 insurance market changes is more essential than 

25 ever. On November 22, 2011, the NAIC adopted a 


rfrederick on DSK6VPTVN1PROD with BILLS
4 

•S 650 IS

1 resolution stating that ‘‘Congress should expedi2 tiously consider legislation amending the MLR provi3 sions of the PPACA in order to preserve consumer 

4 access to agents and brokers’’. 

5 (6) It is critical that the indispensable role 

6 played by licensed independent insurance producers 

7 is recognized and protected. 

8 SEC. 3. PROTECTING THE ABILITY OF LICENSED INDE9 PENDENT INSURANCE PRODUCERS TO CON10 TINUE TO SERVE THE PUBLIC. 

11 (a) IN GENERAL.—Section 2718 of the Public Health 

12 Service Act (42 U.S.C. 300gg–18), as inserted by section 

13 1001 and amended by section 10101(f) of the Patient Pro14 tection and Affordable Care Act (Public Law 110–148), 

15 is amended— 

16 (1) in subsection (a)(3), by inserting ‘‘, remu17 neration paid for licensed independent insurance 

18 producers,’’ after ‘‘State taxes’’; and 

19 (2) in subsection (b)(1)— 

20 (A) in the matter preceding clause (i) of 

21 subparagraph (A), by inserting ‘‘, remuneration 

22 paid for licensed independent insurance pro23 ducers in the individual and small group mar24 ket,’’ after ‘‘State taxes’’; and 


rfrederick on DSK6VPTVN1PROD with BILLS
5 

•S 650 IS

1 (B) in subparagraph (B)(i)(II), by insert2 ing ‘‘, remuneration paid for licensed inde3 pendent insurance producers in the individual 

4 and small group market,’’ after ‘‘State taxes’’; 

5 and 

6 (3) by adding at the end the following: 

7 ‘‘(f) INDEPENDENT INSURANCE PRODUCER REMU8 NERATION DEFINITIONS.—For purposes of this section: 

9 ‘‘(1) The term ‘independent insurance producer’ 

10 means an insurance agent or broker, insurance con11 sultant, benefit specialist, limited insurance rep12 resentative, and any other person required to be li13 censed under the laws of the particular State to sell, 

14 solicit, negotiate, service, effect, procure, renew or 

15 bind policies of insurance coverage or offer advice, 

16 counsel, opinions, or services related to insurance. 

17 ‘‘(2) The term ‘remuneration’ means compensa18 tion earned from an insurance issuer for services 

19 rendered under contractual agreement which may in20 clude commissions or any other thing of value but 

21 which shall not include production bonuses.’’. 

22 (b) REGULATIONS.—Not later than 60 days after the 

23 date of the enactment of this Act, the Secretary of Health 

24 and Human Services shall amend any applicable regulaVerDate Mar 15 2010 07:28 Mar 23, 2013 Jkt 029200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S650.IS S650

rfrederick on DSK6VPTVN1PROD with BILLS
6 

•S 650 IS

1 tions as necessary to implement the amendments made by 

2 subsection (a). 

Æ 


rfrederick on DSK6VPTVN1PROD with BILLS