Health Insurance Companies To Shift Costs To Protect Their Profits From New Law

Before the new law could take effect, health insurance companies has started to mould a key element of health care reform.

The health insurance companies spend a chunk of each premium dollar on the administrative costs and profits rather than on the health care. According to a report, some largest health insurers in the individual health care market spend on an average more of some cents out from the each premium dollar on the administrative costs and profits. The expense can depend on company to company.

With the new health care bill, the health care insurers will required to spend more cents out of the premium dollars or refund the difference in a form of rebates to the customers.

So what will a health insurance company to do now? Some predicted that they are finding new ways to game a new system. And to one report some specific "questionable changes" have been identified in some insurance companies' accounting practices.