What You Need to Know About the Consolidated Appropriations Act If You Sponsor or Offer an ERISA Governed Health Insurance Plan

Wanted to make you aware of a significant legal requirement that is fast approaching. Recent amendments to ERISA, as mandated in the Consolidated Appropriations Act, impose broad compensation disclosure requirements on agents and brokers in connection with group medical plans. These requirements are in addition to any existing state disclosure requirements that may already be in place. Please know that if you sign a new contract (i.e. renew a plan or add a new line of coverage) for an insurance plan?after December 27th the consultant or broker that you work with is required to disclose the compensation that he or she receives from those contracts on an annual basis. If you renewed your January 1 polices already this does not apply (assuming you already signed off on your 1-1 renewal or will do so before 12-27).?Guidance is still outstanding but know that this law is in effect as of December 27 and your broker or consultant has an legal obligation to disclose both their direct and indirect compensation for all policies put in force after that date.

I would recommend that you check with your consultant to get more information about how they will be sharing this information with you. For more detailed information please click on the following link: https://www.independentagent.com/SiteAssets/GroupHealthV2.pdf

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