A bill to set a minimum wage for health insurance agents was resurrected in the state House on Tuesday.
The House voted 150-11 to send Senate Bill 1 back to the Senate. SB 1 originally dealt with insurance coverage for autism. The House, however, stripped out that language and added House Bill 838, the original setting a minimum commission for agents who sell small group health insurance plans.
Rep. Shaw Blackmon, R-Bonaire, carried the bill on behalf of powerful Rules Committee Chairman John Meadows, R-Calhoun, who sells health insurance policies. Blackmon has said the bill will stem the slide of commissions being paid to insurance agents.
Blackmon and lobbyists for agents claim it’s needed because the Affordable Care Act mandated that insurance companies spend at least 80 percent of the money they take in from premiums on health care costs and improving quality. The other 20 percent can go to administrative, overhead and marketing costs, and agents’ commissions are being cut as companies seek to keep most of that 20 percent.
However, Republican lawmakers have long criticized government attempts to involve itself in the marketplace, particularly on wage issues. And the fact that the idea came from a powerful House leader who sells health insurance for a living raised conflict-of-interest questions.
HB 838 last week passed a Senate committee, but not without trouble.
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