15% is supposed to be the limit and the California Medical Association has questions. Who are we taking care of first, the patients or the share holders? According to the study there could have been around $700 million more available for health care claims with Blue Cross itself instead of administration and profit pools. A few months ago, I had posted an article relative to the state of Washington with the 3 major carriers in the year 2006 having over 3.2 billion in reserves, and that is not operating money, just what it is called, reserves that sit there “in case” they are needed.
Good investigative work on the the part of the CMA, and especially at times like we have now when people are fighting tooth and nail to get coverage when needed. BD
Private health insurance companies regulated by the Department of Managed Health Care (DMHC) spend $6 billion each year on administration, and divert an additional $4.3 billion to profit, according to a report released by the California Medical Association (CMA). Prepared using data obtained under the Knox Keene Act, the report breaks down how private health insurance companies spend their revenues.
California Health Insurance Companies Spend $10.3 Billion On Administration And Profit
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