Medical insurance companies cooking the books

Posted: April 18, 2010 in Health
Tags: ,

In a previous post I wondered what kind of moves the insurance companies would start making now that the health care reform bill has been signed. Mainly I was thinking about how they might try to reduce costs by encouraging more patients to practice medical tourism. Of course I expected the companies would start to “review” their accounting practices. And so they are. Reuters reports that the insurance industry is already beginning to game the system and WellPoint has already reclassified more than half a billion dollars of administrative expenses as medical expenses. They idea is to make it easier to meet the requirement that 85% of premiums are spent on actual medical care and not administrative costs (read that as fat cat salaries). No problem. A few little accounting adjustments it’s business as usual.


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