Healthcare Costs Spur Calls for Limits on Profits
State officials target insurers' use of funds as the debate turns from services to finances.
By Daniel Yi, Times Staff Writer
June 2, 2006
Rising medical costs are sparking efforts to cap profits of California's health insurers in the same way that surging gasoline prices are fueling proposals for a windfall oil profit tax.Two bills in Sacramento seek to limit insurers' profits as well as cap consumers' out-of-pocket payments for medical treatment. The state Department of Insurance has a separate plan to limit profits.
Such proposals, if enacted, could result in the nation's most sweeping financial reform of for-profit health plans. Other states, including Connecticut and New York, regulate how much health plans can charge in premiums, and Minnesota allows health maintenance organizations to be run only by nonprofit groups.- - - - - - - - - -
All states should follow Minnesota's example!
