For every dollar you spend on health insurance premiums, how many cents does your health insurance company take? Twenty-five? Thirty? The rhetoric on rising health care costs would certainly lead you to believe it’s a hefty number like that.
Actually, in 2009, according to data gathered by the Centers for Medicare and Medicaid Services, it was eleven. Eleven cents out of every premium dollar went to insurance company administration, only two or three cents of which is profit. Even more important, though, is the trend the data show: seven straight years of decline. Since 2003, administrative costs have taken up a smaller and smaller share of the insurance premium dollar.
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