Senate Pressing Insurers on the Amount of Premiums They Spend on Care

[TomCADem]

Source: NY Times

The health insurance industry likes to cite figures showing that 87 cents of every dollar in premiums is spent on medical claims.

But a new Senate analysis suggests that for-profit insurance companies are spending much less than that, especially for policies sold to individuals and small businesses. Instead, as little as 66 cents of each dollar paid in premiums goes toward doctor and hospital bills, while the rest covers administrative expenses, marketing and company profits, according to the analysis.

The data come from an analysis of regulatory filings by the Senate Commerce Committee from the largest for-profit companies, including WellPoint, the UnitedHealth Group, Aetna and Cigna. They spent about 74 cents out of every dollar on medical care in the individual market, according to the information released by Senator John D. Rockefeller IV, the West Virginia Democrat, who is chairman of the commerce committee.

The insurers “need to tell us how they are spending their customers’ money,” Mr. Rockefeller said in a statement he released on Monday along with the committee’s analysis. “Are they spending it to make people well when they are sick and keep them healthy?” he asked. “Or is the money they charge going to profits, to executive salaries, and to figuring out how to deny care to people when they really need it?”

Read more: http://www.nytimes.com/2009/11/03/business/03insure.html

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More ammo, as if we need it, to address the right wingers arguing that no reform is the best alternative on the table.

[No Elephants]

1. As you well know, right wingers are not the only ones arguing that no bill would be

better than the bills that have been getting serious consideration in Congress.

This is a good effort though. But I've learned to check jubilation until we see what actually happens.

Wonder whatever happened to taking away the industry's exemption from the monopoly laws. That sure died down fast.

[supernova]

2. As far as I know,

no one has taken it off the table permanently.

They had that one hearing in Mid-October, but they could still be discussing it behind closed doors.

http://www.nydailynews.com/blogs/dc/2009/10/senate-takes-aim-at-insurance.html

[sasquuatch55]

3. To the health "insurance" industry: To call it INSURANCE is definetly a misnomer!

If not a LIE!

[pattmarty]

4. My belief has now become scrap this "bill". Start over with strong..............

............regulation of the industry and I mean strong. Repealing the anti trust is first and foremost. If they are going to operate then they will have RULES they will have to abide by. Hopefully Senators like Franken, Feingold, Sanders, Kerry, Kirk and the progressive reps in Congress will ALL get behind these REAL reforms. Hopefully when the Country realizes how they have been fucked for the last 40 yrs they will finally elect Reps that will pass a solid form of single payer/government run healthcare.

[TomCADem]

5. Won't Blue Dog, Conservadems, Republicans, Insurers, Etc. Be Even More Opposed?

I just don't see how Joe Lieberman, for example, would vote for single payer after they so strongly opposed the current reform bills. Also, I don't see how things getting worse somehow makes reform more possible in the future?

Things have gotten much worse:

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