Group proposes health insurers' spending rules

Reuters, September 24, 2010

Under a draft plan released on Thursday, insurers would be allowed to deduct nearly all federal and state taxes except for federal income taxes on investment income and capital gains in making their calculations.

"It's written the way insurers wanted it to be written, and so that is good for the insurers," said Amy Thornton, an analyst at Concept Capital's Washington Research Group.

The Healthcare law, passed in March, sets strict limits on how insurers allocate customers' premium dollars toward medical care versus administrative costs and profits, spending levels known as the medical loss ratio (MLR).

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