College campus health plans inefficient

BOSTON (AP) - A new report shows that the health insurance plans sold to almost 100,000 college students in Massachusetts result in higher profits for insurance companies than those available to the general public.

The report by the Division of Health Care Finance and Policy shows that, on average, 30 cents of every premium dollar goes toward profits and administrative costs, compared with 12 cents for plans sold to the general public.

The disparity is even greater for students at state schools, where 45 cents of every insurance dollar they pay goes to profit and administrative costs.

The study was launched following complaints by students.

Brian Rosman of Health Care for All, a consumer group, says the state should reign in "outrageous" profits and administrative costs.