Health insurers face new federal rules on medical spending ~ Washington Post

[mzmolly]

The Obama administration issued far-reaching rules Monday to carry out a controversial promise that the new health-care law makes to consumers: insurers must spend at least $4 out of $5 they collect through premiums on direct medical services and other means to improve Americans' health.

Under the rules to take effect in January, the government will reach in novel ways into the workings of the insurance industry to try to drive down bureaucracy, profits and executives' pay.

For the first time, health plans will have to disclose many details about how they allot their money, calculate the portion of their spending that promotes good health, and - if they devote too much income to the wrong purposes - give customers refunds.

In announcing the new standards for what are known in insurance jargon as "medical loss ratios," Health and Human Services Secretary Kathleen Sebelius portrayed the rules as a "guarantee that consumers get the most out of their premium dollars."

More at the http://www.washingtonpost.com/wp-dyn/content/article/2010/11/22/AR2010112202177.html?wpisrc=nl_wonk">WASHINGTON POST

[EarthFirster]

1. In other words

,,,insurance rates are going UP. Even more, they are going through the roof. Then, all your medical care will be streamlined, so that your doctor will be little more than a computerized number puncher.

Then, as all the GOOD doctors flee Medicine, we will start opening up the third world for all those great third world doctors.

This was NOT the way to go on healthcare, competition was, and that was scrapped.

America continues its slow decline into oblivion...

Great job...

[Recursion]

2. No, they have to rebate consumers if their premiums exceed 125% of their expenses (nt)

[patrice]

3. So? Perhaps they'll have to figure out how to cut some of their 30% overhead. You oppose that they

should spend more on care?