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SIIA Asks DOL to Ensure Level Playing Field for Self-Insurance
Contact: David Kirby WASHINGTON, D.C., March 31, 2008 – The Self-Insurance Institute of America, Inc. (SIIA) today asked the Department of Labor (DOL) to clarify its proposed regulations regarding employee health plan insurance fee transparency to include “commissions” and other compensation related to the purchase of insurance.
“Our goal is to assure a level playing field for self-insured employee health plans in comparison to fully-insured plans so that plan fiduciaries have all the information they need to make prudent decisions regarding participants’ coverage,” said SIIA member Ashley Gillihan after testifying on behalf of the association before the DOL regarding its proposed regulation regarding health insurance fee disclosures.
Gillihan asked the DOL for clarification in its regulation to include any compensation that insurance brokers or agents may receive from insurance carriers or any third parties that would be related to the purchase of such insurance. He pointed out for example that some insurance sales compensation is commonly based on the volume of overall sales for a particular insurance carrier and would not be a visible part of a specific premium transaction.
Gillihan highlighted that sponsors of employee health plans may be unable to identify conflicts of interest or accurately compare costs of self-insured versus fully insured insurance plans without further clarification in the proposed regulation.
SIIA is a national trade association that represents companies involved in the self-insurance/ alternative risk transfer industry. Additional information about the association can be accessed on-line at www.siia.org, or by calling 800/851-7789. ### |
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