Tierney: Insurance funds must be for care
Health insurance companies must spend the bulk of their premiums on paying for medical coverage rather than executive salaries and administrative expenses, says U.S. Rep. John F. Tierney.
The Salem Democrat on Tuesday advocated for the Affordable Care Act, which went into effect Jan. 1.
The legislation includes a provision that Tierney spearheaded, requiring insurers to spend 80- 85 percent of health premiums on medical care.
In addition, the provisions will cut government overpayments to insurance companies, reduce the costs of prescription drugs for senior citizens and provide them with free preventative health services.
“History has shown us that health insurance companies put profits and bonuses ahead of the health care of their customers,” the Congressman told The Daily Item Tuesday, noting the act was a necessary step toward reforming the nation’s health care system. “I’m committed to ensuring that insurance companies follow the law and consumers are provided the full benefits of their health insurance premiums.”
The Affordable Care Act passed by Congress in 2010 put in place comprehensive health insurance reforms to hold insurance companies accountable, strengthen Medicare and lower health care costs.
As a result, insurance companies will be required to spend premium dollars primarily on health care.
This article was originally published in the Lynn Daily Item on January 5, 2010.
