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Health Insurance Profits Wrong War

As we have been saying here for quite some time, the Health Insurance Industry is not the enemy. Unless your intent is to allow the Government to take over health care. Single payer.

The Obama Administration is demonizing the Health Insurance Companies for overcharging customers and making obscene profits.

As this blog has explained numerous times, the Insurance Industry makes the bulk of their money by investing the premiums. Often, the money paid out for claims is less than they took in in customer premiums. This is called an underwriting loss.

Wise investing covers the losses and makes money.

Now, a bit of fact checking shows that the Insurance Company profits are not so obscene after all. Last year, Healthi Insurance Companies posted a 2.2% margin.

The Obama Administration and Nancy Pelosi are not being truthful. Their desire is to take over the Health Care business and facts don’t matter.

Quick quiz: What do these enterprises have in common? Farm and construction machinery, Tupperware, the railroads, Hershey sweets, Yum food brands and Yahoo? Answer: They’re all more profitable than the health insurance industry. In the health care debate, Democrats and their allies have gone after insurance companies as rapacious profiteers making “immoral” and “obscene” returns while “the bodies pile up.”

Ledgers tell a different reality. Health insurance profit margins typically run about 6 percent, give or take a point or two. That’s anemic compared with other forms of insurance and a broad array of industries, even some beleaguered ones.

Profits barely exceeded 2 percent of revenues in the latest annual measure. This partly explains why the credit ratings of some of the largest insurers were downgraded to negative from stable heading into this year, as investors were warned of a stagnant if not shrinking market for private plans.

Click here to read the rest of the truth.

About Tom White

Tom is a US Navy Veteran, owns an Insurance Agency and is currently an IT Manager for a Virginia Distributor. He has been published in American Thinker, currently writes for the Richmond Examiner as well as Virginia Right! Blog. Tom lives in Hanover County, Va and is involved in politics at every level and is a Recovering Republican who has finally had enough of the War on Conservatives in progress with the Leadership of the GOP on a National Level.

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Tom White Says:

Nothing is more conservative than a republican wanting to get their majority back. And nothing is more liberal than a republican WITH a majority.

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