Take a bite out of….

Insurers are taking a bite out of our health care. A big bite. According to PNC Financial Services Group, it’s an average of 30 cents on every premium dollar for administration ALONE.

That does not include profits.

The numbers closely mirror what the Department of Insurance found last year as it held hearings on Preferred Provider Organizations (PPO plans).

In California, HMO administration and profits is limited to 15 percent of the premium dollar. However, PPO products — which are regulated by the state Department of Insurance — have no such cap.

The state Department of Insurance last year reported that the average of all Blue Cross’ PPO policies were 24% profit and administration. However, for policies on the individual market — where people aren’t buying through an employer or government pool — profits can be 27 percent and administration another 9 percent.

For these products, as little as 51 cents for every premium dollar actually goes to health care. The amount of money that insurance companies must spend to provide health care to enrollees to coldly called a “medical loss ratio,” meaning they’re losing money on you.

Let’s reverse this trend and take a bite out of administration — and profits.

Health Access California promotes quality, affordable health care for all Californians.
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