The U.S. Supreme Court's decision to uphold the constitutionality of the Patient Protection and Affordable Care Act is bad news for insurance agents, according to a national association that represents industry professionals.
With the slim majority of Supreme Court justices voting in favor of the healthcare law, the Independent Insurance Agents and Brokers of America stated its opposition to the Court's decision.
Charles Symington, senior vice president of government affairs for IIABA, said that the PPACA's implementation will not benefit agents, especially with regards to their financial compensation.
The PPACA's [medical loss ratio] provisions threaten the livelihoods of health agents and brokers and establish perverse incentives that make it challenging for smaller insurers to enter the marketplace," said Symington.
He added that the MLR provisions implemented have cut compensation by as much as 50 percent in some areas of the country, making it more difficult for agents to provide for their families or serve their insurance customers.
Robert Rusbuldt, IIABA president and CEO, echoed Symington's sentiments, saying that the provisions of the PPACA will ultimately do more harm than good.