The demonization of making a PROFIT

Part of the scheme to manipulate the masses is to paint insurance companies as evil for making a profit. The hope of the political class is to get enough people on board the hate-insurance-companies bus and thus lend their support to government run healthcare. Relating to "profits" (a dirty word to the socialists of the world) here are some statistics I found over at Neal Boortz's site:

According to the most recent Fortune 500 rankings, health insurers are not even among the top-30 United States industries in profit-margin. Health insurers rank 35th, with a profit-margin of just 2.2 percent -- less than one-fifth the profit-margin of railroads. None of the ten largest American health insurers made profits of more than 4.5 percent, and two of them lost money. Health insurers' collective profit-margin is less than one-eighth that of drug companies and less than one-seventh that of companies that sell medical products or equipment. It's also less than that of medical facilities. Yet when was the last time you heard President Obama rail against greedy hospitals?

The combined profits of America's ten largest health insurers are $8.3 billion. That's less than two-thirds of the profits of Wal-Mart alone, less than half of the profits of General Electric alone, and less than one-seventh of what Medicare loses each year to fraud. Health insurers collectively have one-eighth the profit-margin of McDonald's or Coke, one-ninth that of eBay, and one-fifteenth that of Merck.

In all, the combined profits of the 14 largest American health insurers (the ones who crack the Fortune 1000) are $8.7 billion. That's less than 0.4 percent, or 1/250th, of overall U.S. health-care costs, which are $2.5 trillion.

1 comment:

Chief Instructor said...

When are these guys going to stand up and publicly fight this slander? Their premiums go up when the cost of care goes up - and that is something over which they have no control.

Want to see premiums drop over night? Allow cross-state insurance, just like auto or life insurance, and limit malpractice lawsuits to some number ($250K? $500K? $1MM? Tiered, perhaps) unless there is clear, demonstrable intent on the part of the doctor to harm or maim.