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Why Does Health Insurance Cost So Much?

Some politicians blame insurer profits and administrative costs for the increase in health insurance costs. However, in 2009 the percentage of premiums that went towards administrative costs and profits actually declined for the sixth year in a row. A U.S. Center for Medicare Services (CMS) study found that insurer administrative costs accounted for only 11.15 percent of health insurance premiums in 2009. [307 word article, April 2010]


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