Calif. Groups Mull Effects of Medical Spending Regulations
A provision in the federal health reform law requires large group health plans to spend at least 85% of premium revenue on medical care starting Jan. 1. AÂ 2008 report by the California Medical Association estimates that such a requirement could bring more than $1 billion into the state's heath care system. Meanwhile, California health officials are raising questions about their authority to enforce the new regulations.
- "Feds Mandate More Revenue Spent on Medical Care" (Robertson, Sacramento Business Journal, 12/3).