More Transparency and Accountability For Insurance Companies

 In Blog

Ever wonder where the premiums actually go when you send money to the insurance companies? Curious how much they really pay to doctors after your physical? Well, beginning this year, insurance companies must publicly report how they spend premium dollars.

Insurance companies that issue policies to individuals and small and large group employers will have to report the following information to each state where it does business:

* Total earned premiums
* Total reimbursement for clinical services
* Total spending on all other non-claim costs excluding federal and state taxes

In addition, insurance companies are required to spend at least 80% of premium dollars collected on medical care and quality improvement activities. (Who knows how much money actually went to medical care previously and not into the executives pockets?)

It’s still unclear if we the public will be enlightened to this new transparency, but at least it will force the insurance companies to eventually…show us the money!

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