Quote:
Originally Posted by Derwood
New report came out today that stated:
Top 5 Health Insurance companies:
- saw a 56% increase in PROFITS since 2008
- dropped 2.6 million insurees
- used less of customer premiums on health costs and more on salaries/administrative costs/bonuses
The insurance companies retort is that it's unfair to compare 2009 to 2008, as 2008 was a "down year across the industry".
Health-care insurers netted 56% more in '09 | Columbus Dispatch Politics
This is just one of several stories starting to come out (including huge premium increases in California) shedding a bad light on the insurers.
Will this change anything in terms of the health care reform bill, or will it be shot down and never heard about again?
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The only numbers that matter are the ones at the bottom of the article: percent net profit. One of the five sold a division and had a 7.3% net profit. The others ranged from 3.4% to 7.1%. If you are making 2.2% net profit and you have a 56% percent increase in profits, you rise to 3.4% net profits. The "56" number just makes it look naughty. I think it would be important to see how those net profits compare to other industries to see if they are out of line.
As for the bill, I don't think it will change many minds. Those who support the bill will use this as further justification. Those who oppose the bill, do so because they don't want the government to run healthcare (on principle), so their profits won't alter that principle.