Insurance agents must be licensed and satisfy continuing education requirements, which are important protections for the public. This licensing standard is lacking in HCFA's current strategy of hiring anonymous individuals and using impersonal tools for older Americans. Since independent health insurance professionals are contractors and not employees, insurance carriers do not have such associated costs as benefits and reimbursement expenses to provide. They simply have the cost of the agent's commission. It is important to remember that the agent's commission does not add any cost to the Medicare program, for ALL health plans, public and private, have a marketing component built into their administrative fees.
Licensed agents provide accountability and the greatest assurance against fraud and abuse.
NAHU appreciates the opportunity to provide our views to the members of the commission on this important issue. We look forward to working with you and HCFA to maximize the choices available to older Americans under the Balanced Budget Act. I can think of no more effective agent in advancing our freedom to live as we choose than the insurance sales person. They know our wants. They help in times of need.