By mandating universal health insurance coverage, the recent health care reform may make medical care more affordable for all Americans.

A medical loss ratio also included in the reform is aimed at cutting costs where they begin: with the insurers. Starting on January 1, 2011, health insurance companies will have to spend 80 cents out of every premium dollar on claims for the individual insurance or small group market, and 85 cents on the large market. This is aimed at directing expenses away from administrative costs.

However, many companies are reclassifying administrative costs as medical expenses in an effort to get around this provision, according to a recent report from the Senate Committee on Commerce, Science and Transportation.

“This new data makes clear that too many health insurance companies are still putting profits before people, and they have a lot of work to do to meet the consumer protection requirements of the health care reform law by the end of this year,” Chairman John Rockefeller said. “It’s time to give consumers the medical benefits they pay for and deserve.”

The Patient Protection and Affordable Care Act was approved by Congress on March 23.

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