How much are health insurers spending on you?

Part of Health Care reform is an attempt to regulate how much health insurers spend on their policy holders. This is called a loss ratio and the reform legislation calls for an insurer to spend $0.80 per $1.00 in premium to pay claims and provide services. The other 20% would be for salaries, agent commissions, overhead, buildings and other administrative and non-claim expenses. For large companies, those with more than 100 employees, the ratio increases to $0.85/$1.00 in premium. Read here for more details http://money.cnn.com/2010/05/25/news/companies/medical_loss_ratio/index.htm?source=cnn_bin&hpt=Sbin Does this make sense to you? One study shows that only 7% of cost increases are contributed by administration costs (including insurance premiums). The leading contributors - Hospitals and Physicians http://www.kaiseredu.org/topics_im.asp?imID=1&parentID=61&id=358.