Insight News

Feb 06th

Ellison Health Care Reform legislation ties insurance costs to patient care

E-mail Print PDF
keith_ellisonKeith Ellison (D-MN5) this week introduced health care legislation in anticipation of upcoming Congressional action on health care reform.  Ellison’s The Good Care Act of 2009 requires that all health plans participating in the proposed “health insurance exchange” spend a minimum of 90% of the health care premiums they charge on health care services for their patients.

“Minnesota is a national leader in health care,” Ellison said “I believe that if health plans across the country followed Minnesota’s lead, we would ensure that our precious health care dollars are used to fund actual health services.  Enactment of The Good Care Act of 2009 would do just that,” Ellison said.

President Obama and Congressional leaders are proposing the creation of a health insurance exchange – a market where uninsured Americans can shop for a health care plan, compare benefits and prices and choose a plan that’s best for them.  Government subsidies will be provided for uninsured individuals to purchase plans in this insurance exchange.

The administrative cost of the top five health insurance companies in the United States is 17% and the average administrative costs for private insurers is 14%. The Good Care Act of 2009 requires that all health plans participating in this exchange have a minimum medical loss ratio (MLR) of 90%. A medical loss ratio identifies the proportion of a plan’s premium revenue that a health plan devotes to health care versus administrative costs (or returns to shareholders). Most of Minnesota’s health plans have medical loss ratios ranging from 89-95%. 

“Now is time to provide universal, affordable health care to all of our citizens,” Ellison said. “One way to fund universal health care is to make sure that the health plans actually spend the monies provided them on actual health care services.”

Recent Comments

Powered by Disqus

Facebook Twitter RSS Image Map

Latest show

  • October 20, 2015
    Jessica Jackson, co-pastor, Impact Living Christian Center in South Minneapolis.

Business & Community Service Network