A new report shows California health insurers made more than $4.3 billion in profits last year. Critics say the companies should have put less in their bank accounts and more into patient care. KPBS Reporter Kenny Goldberg has the story.
The report is based on information provided to state regulators. It finds in addition to reaping healthy profits, five California HMOs paid their top executive a salary of at least $1 million dollars. Doctor Ted Mazer is a San Diego ear, nose, and throat specialist. He concedes insurers are in business to make money.
Mazer: Well, it wouldn't be wrong if we weren't at the same time seeing them raise premiums that are making it unaffordable to buy health insurance, and spending all of their administration and profit money on denying benefits and denying coverage to people.
One insurer, Anthem Blue Cross, spent 79 percent of its revenue on medical care last year. That's the lowest percentage of all major carriers.
Kenny Goldberg, KPBS News.
