|Understand Florida Health Insurance --
Interesting fallout of the healthcare reform bill has been health insurance companies using the accounting tricks to get around the healthcare and health insurance reform. The idea is to boost corporate profits by spending less on medical care and boost corporate profits. Many of America?s biggest health insurance companies are trying to dress up their accounts a differently so as to comply with regulatory norms, which require them to change their spending habit.
The new healthcare law requires that the health insurance companies must spend a minimum of 85 cents of every dollar they earn as premium on medical care. The rest could be spent on administrative expenses. This is applicable on large group health insurance plans.
However for individual and small group plans, the healthcare reform bill does provide a bit of leeway, such that only 80 cents on dollar received as premium needs to be devoted to medical care and medical care only. The rest can be spent on administration expenses.
However, like every other powerful industry, health insurance companies are attempting go around the rules, without actually breaking the law. They are doing this by window dressing certain administrative expenses as medical expenses. This of course is done under ?reclassifying? the expenses. Many analysts feel that this is the beginning of maneuvers of the health insurance industry to try and thwart the health reform bill.
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