(1) Licensed independent insurance producers 
(agents and brokers) provide a wide range of serv-
ices for both individual consumers and the business 
community. Producers interface with insurers, ac-
quire quotes, analyze plan options, and consult cli-
ents through the purchase of health insurance. 
(2) Licensed independent insurance producers 
provide guidance regarding benefit and contribution 
arrangements to ensure compliance with applicable 
State and Federal laws and regulations; assist with 
establishing section 125 plan tax savings under the 
Internal Revenue Code, health reimbursement ar-
rangements, flexible spending arrangements, and 
other programs to maximize tax advantages and en-
sure compliance with applicable Internal Revenue 
Service guidelines; create educational materials and 
provide on-site assistance to aid in employee benefit 
communication; assist in managing eligibility for 
new hires and terminated employees; provide advo-
cacy for employees through the health insurance 
claim process; and advocate for employers with in-
surers in developing proposals, renewals, and for 
service issues throughout the year. 
(3) In order to meet these responsibilities, li-
censed independent insurance producers are required 
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to complete continuing education on an ongoing 
basis in order to maintain appropriate licenses. This 
requirement to maintain educational standards helps 
assure the insured public that producers remain cur-
rent with the ever-evolving insurance market. 
(4) It is essential that licensed independent in-
surance producers continue to perform these duties, 
and others, as the Patient Protection and Affordable 
Care Act has made significant changes to the regu-
latory environment for health plans. To understand 
these changes, employers and consumers will need 
professional guidance even more in the future. This 
service is especially important for small businesses, 
as such producers often fill the role of a human re-
sources department as well as professional consult-
ant. 
(5) The National Association of Insurance 
Commissioners—whose core mission is to protect 
consumers in all aspects of the business of insur-
ance—strongly advocates for the continuing role of 
licensed independent insurance producers in health 
insurance, and has expressed that the ability of in-
surance agents and brokers to continue assisting 
health insurance consumers at a time of rapid insur-
ance market changes is more essential than ever. 
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(6) It is critical that the indispensable role 
played by licensed independent insurance producers 
is recognized and protected. 
SEC. 3. PROTECTING THE ABILITY OF LICENSED INDE-
PENDENT INSURANCE PRODUCERS TO CON-
TINUE TO SERVE THE PUBLIC. 
(a) IN GENERAL.—Section 2718 of the Public Health 
Service Act (42 U.S.C. 300gg et seq.), as inserted by sec-
tion 1001 and amended by section 10101(f) of the Patient 
Protection and Affordable Care Act, is amended— 
(1) in subsection (a)(3), by inserting ‘‘, remu-
neration paid for licensed independent insurance 
producers,’’ after ‘‘State taxes’’; 
(2) in subsection (b)(1)(A)— 
(A) in the matter preceding clause (i), by 
inserting ‘‘, remuneration paid for licensed 
independent insurance producers,’’ after ‘‘State 
taxes’’; 
(B) in clause (ii), by inserting ‘‘or small 
group market’’ before ‘‘in such State’’; and 
(C) by adding at the end the following new 
sentence: 
‘‘In the case of a State request for an adjust-
ment pursuant to clause (ii), the Secretary shall 
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defer to the State’s findings and determinations 
regarding destabilization.’’; 
(3) in subsection (b)(1)(B), by inserting ‘‘, re-
muneration paid for licensed independent insurance 
producers,’’ after ‘‘State taxes’’; 
(4) in subsection (d), by inserting ‘‘or small 
group market’’ after ‘‘individual market’’; and 
(5) by adding at the end the following new sub-
section: 
‘‘(f) INDEPENDENT INSURANCE PRODUCER REMU-
NERATION DEFINITIONS.—For purposes of this section: 
‘‘(1) The term ‘independent insurance producer’ 
means an insurance agent or broker, insurance con-
sultant, benefit specialist, limited insurance rep-
resentative, and any other person required to be li-
censed under the laws of the particular State to sell, 
solicit, negotiate, service, effect, procure, renew or 
bind policies of insurance coverage or offer advice, 
counsel, opinions, or services related to insurance. 
‘‘(2) The term ‘remuneration’ means compensa-
tion paid by or accrued from an insurance issuer or 
health plan for services rendered under contractual 
agreement which may include fees, commissions, or 
rebates.’’. 
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(b) REGULATIONS.—Not later than 60 days after the 
date of the enactment of this Act, the Secretary of Health 
and Human Services, in coordination with the National 
Association of Insurance Commissioners, shall amend any 
applicable regulations so as to take the amendments made 
by subsection (a) into account. 
Æ 
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