With health plans like UnitedHealth and Blue Cross of California under public scrutiny for their business models, a move is underway to cap health plan profits. California insurance commissioner John Garamendi is behind one proposal, which seeks to cap health plan profits. Two separate bills proposed by Sacramento lawmakers seek to accomplish similar goals. One of the measures seeks to set a cap on patient copays. The legislative action is drawing quiet support from both hospitals and doctors in the state. "Too much of the premium dollar is going to [profits and administrative costs] where it doesn't help us provide essential care," comments Jack Lewin, chief executive of the California Medical Association, a doctors' group.
- read this article [1] from The Los Angeles Times
Links:
[1] http://www.latimes.com/business/la-fi-profits2jun02,0,2178854.story?coll=la-home-business