The Comprehensive Appropriations Act of 2021 was signed into law by President Donald Trump in the final days of 2020. Importantly for insurance agents and brokers, section 202 of the act amends and expands Section 408(b)(2) of the Employment Retirement Income Security Act of 1974 (ERISA), which already requires compensation disclosures relating to retirement plans. This new provision will have a significant impact on health insurance agents, brokers, and consultants because it now requires them to disclose compensation and other information to sponsors of group health plans subject to ERISA.
The act also requires health insurers to disclose to individual health insureds the compensation paid to the agent or broker involved in the coverage selection and enrollment. The new requirements will take effect on December 27, 2021. The Big “I" has met with and submitted comments to both HHS and DOL on the requirements. Additionally, the Big “I" has provided a 5-page memo and an educational webinar detailing the requirements.
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