Study: California HMOs raked in $4 billion in profits

Some executives at California health insurance providers paid themselves handsomely while their companies were raking in more than $4.3 billion in profits in the last year, according to a report by the California Medical Association. In addition, HMOs spent $6 billion on administrative costs, money which the Medical Assocaition said could have gone toward driving down premiums or better protecting the insured. The medical association is sponsoring a bill to require health plans to spend at least 85% of their annual income from the insured on healthcare.