Health insurers shifting costs ahead of law: report

[Elmore Furth]

It is nice to know that the creative accounting of modern corporate America is alive and well.

Some of the largest U.S. health insurers are changing their accounting practices to book administration costs as medical costs in an attempt to circumvent new industry reforms, according to a U.S. Senate panel's report released on Thursday.

Under the healthcare law passed in March, insurers must adjust their spending habits to meet new requirements. For example, large group plans must spend at least 85 cents of every premium dollar paid to them on actual medical care as opposed to administrative costs, while individual and small group plans must spend 80 cents.

A review of companies' expenses for 2009 shows that in some markets, insurers are spending 74 cents per dollar on care on average, according to the report, which was released on the committee's website at link.reuters.com/bas87j.

Although the MLR rule does not kick in until January 1, insurers so far are "still far below" what the law will require, said Senator John Rockefeller, the committee's chairman.


Health insurers shifting costs ahead of law: report

[msongs]

1. lol change we can believe in aka health scare reform we can believe in nt

[Skittles]

2. Congress helpfully has given them time to do just that

same as they did with the "credit card reform"