U.S. Health Insurers - Billing Administrative Costs as Medical Costs

An informative article on the ChiroOrg Blog reports that some large health insurance companies are trying to sidestep laws of the new insurance industry reforms.

The new requirement under the healthcare law passed in March calls for insurers to adjust their spending. Large group plans need to be spending 85 cents per premium dollar on medical costs vs. administrative costs. Some companies’ expenses for 2009 show certain markets spending only 74 cents instead of the 85 cents that will be required upon implementation of the new legislation.

“This new data makes clear that too many health insurance companies are still putting profits before people,”  said Senator John Rockefeller, the committee’s chairman, “and they have a lot of work to do to meet the consumer protection requirements of the health care reform law by the end of this year.”

Insurance companies have until Jan. 1, 2011 to comply with these new regulations.