RISKY BUSINESS - HOW INSURANCE COMPANIES GAMBLE WITH YOUR HEALTH COVERAGE

Under a patchwork of state laws and virtually no federal oversight, a decade of risky investments, questionable business dealings, lavish sp ending, and help-yourself ethics in the insurance industry is playing a hidden role in the crisis in affordable medical coverage. Skyrocketi ng medical costs are the main culprit, but financial losses have put p ressure on insurers to raise premiums and cancel risky policyholders. The losses also are a major factor in the sharp increase in life/healt h insurance company failures, which can leave policyholders stranded.