IIABNY Lauds Senate Bill Creating Role for Agents in Health Insurance Exchange

DeWitt, N.Y.—The Independent Insurance Agents & Brokers of New York has applauded a State Senate bill that would guarantee a role for agents and brokers in the state’s forthcoming health insurance exchange. Senate Bill 5652, introduced by Senators James L. Seward (RMilford) and Kemp Hannon (R-Garden City), is the first formal proposal for creating New York’s exchange.

Under the federal Patient Protection and Affordable Care Act of 2010 in March of last year, every state must set up and operate a health insurance exchange by 2014. The exchanges will be competitive insurance marketplaces offering varieties of plans that meet certain benefits and cost standards. Small businesses and individuals whose employers do not offer health insurance will be able to purchase coverage from the exchanges; the law requires members of Congress and their staffs to purchase coverage from them.

The legislation would establish the exchange in New York as a public authority that would operate under the supervision of an 11-member board of directors. The directors must collectively have expertise in six different areas related to health insurance, and individually must have expertise in at least one of those areas. One of these areas is purchasing health coverage; the bill specifically mentions agents and brokers in this category. In addition, it requires that agents and brokers be permitted to obtain coverage for individuals and businesses through the exchange. Eight regional advisory committees will advise the exchange; the bill makes agents and brokers eligible to serve on these councils.

“Insurance producers play an indispensable role in helping individuals and small business customers to navigate the complex landscape of health insurance with its many plans and options,” said IIABNY Chair of the Board Christopher A. Brassard. “We are pleased that Senators Seward and Hannon have recognized this in their bill.”

Ensuring a role for insurance producers in the New York exchange has been one of IIABNY’s top priorities. The group has worked closely with policy makers on the issue since Congress enacted the law last year. It organized a meeting of several insurance producer groups last month to identify their priorities for the new marketplace. That meeting produced a statement of core principles, released on April 18. IIABNY Director Jack Smith spoke at an April 28 roundtable discussion hosted by the two senators (Seward chairs the Insurance Committee, while Hannon chairs the Health Committee.)