News Headlines Article

Health plans must spend premiums on medical care
San Francisco Chronicle

Health insurers must spend most of the premiums they collect for medical care, or issue rebates to consumers, the Obama administration said in regulations issued Monday.

The rule unveiled by the Health and Human Services department requires insurance companies to spend at least 80 cents of the premium dollar on medical care and quality. For employer plans covering more than 50 people, the requirement is 85 cents.