The Boston Globe's Kay Lazar reports that insurers are profiting more off of health plans sold to Massachusetts college students, with less money actually spent on medical care. Citing an investigation by state regulators — which was initiated by student complaints — Lazar writes:
The report by the Division of Health Care Finance and Policy shows that, on average, 30 cents of every premium dollar goes toward profits and administrative costs, compared with 12 cents for plans sold to the general public. The remainder of the premiums is what’s used to pay medical bills.
Students at state schools faced the greatest disparity: 45 cents of every insurance dollar they pay goes to profit and administrative costs, according to the report.
For more than a year, students at several campuses have pushed state regulators to investigate because, they said, the lower-cost insurance products marketed to them offer limited coverage, leaving many vulnerable to enormous medical debts after accidents or serious injuries.
This program aired on November 6, 2009. The audio for this program is not available.