News Headlines Article

States Affirm Tough Limits on Insurers’ Use of Dollars
New York Times

State insurance commissioners on Thursday unanimously endorsed tough new standards that would require many health insurance companies to spend more of each premium dollar for the benefit of consumers.

The new federal health care law stipulates that at least 80 percent of premium revenue must be spent on medical care and “activities that improve health care quality” for patients — not retained as profits or used to pay executive compensation and administrative expenses.