The Obama administration is going at it hard with the managed care plans. They are now demanding that the health insurance premiums in which people pay for should go toward actual medical care. This seems intuitive but the problem is that tons of money goes to administration, marketing, and executive bonuses. The Health and Human Services Department calls for insurance companies to spend at least 80 cents of the premium dollar on medical care and quality. Now the managed care companies, in retaliation, are threatening to pull out of some states. The battle is on and lines are being drawn in the sand, so watch out. It drives me crazy that the insurers can be waste so much of its money on administrators, etc. but then I again I am not sure that I love our government meddling in the free market system. There is definitely more to come on this.
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