Consumer advocacy groups are calling for the government to look into premium hikes instituted by health insurance companies.

Consumer Watchdog and the Center for Media and Democracy assert that health insurance companies are jacking up their premiums before new legislation takes effect. A letter was sent to the Obama administration from the group asking them to look into the matter.

"Insurance companies appear to be making sure that when new federal rules for spending on health care kick in next year, they can keep their administrative bloat and profits intact," says Consumer Watchdog research director Judy Dugan.

Under healthcare reform, health insurance companies will be required to use a certain portion of premium money towards paying for care, rather than overhead costs. The watchdog group asserts that such a change is causing companies to raise prices.

Wendell Potter of the Center for Media and Democracy notes that recently Cigna reported spending 6.4 percent less on medical spending than they were before.

Earlier this year, a major health insurance company withdrew its proposal to significantly increase rates after it was determined that mathematical errors were made on the insurance agency's behalf.