Tuesday, October 27, 2009
Health Insurance Profits NOT EVIL, Democrats Demonize Profits of Anyone but Themselves
From Political Integrity. com here is an interesting article on the not so evil profits of health insurance companies:
Oh, Nancy Pelosi and the progressive liberals of Congress…how is it you have come to hate money so much when you yourself are awash in it?
Said Nancy: “I’m very pleased that (Democratic leaders) will be talking, too, about the immoral profits being made by the insurance industry and how those profits have increased in the Bush years.” House Speaker Nancy Pelosi, D-Calif., who also welcomed the attention being drawn to insurers’ “obscene profits.”
Even here you feel the childish need to mention Bush. Tsk, tsk, Nancy. Do you really want us to put our magnifying glasses on you and compare notes?
Remember, Insurance Companies are evil. They are drunk on the profits they have so ruthlessly yielded and need to be destroyed! Where’s my pitchfork and torch? Behold an article from the AP, gasp!, and judge for yourselves who is really talking smack and who is really trying to make a living.
From the From AP.
WASHINGTON – 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.”
But in pillorying insurers over profits, the critics are on shaky ground. 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.
Insurers are an expedient target for leaders who want a government-run plan in the marketplace. Such a public option would force private insurers to trim profits and restrain premiums to compete, the argument goes. This would “keep insurance companies honest,” says President Barack Obama.
The debate is loaded with intimations that insurers are less than straight, when they are not flatly accused of malfeasance.
The insurers may not have helped their case by commissioning a report that looked primarily at the elements of health care legislation that might drive consumer costs up while ignoring elements aimed at bringing costs down. Few in the debate seem interested in a true balance sheet.
A look at some claims, and the numbers: