Health Insurance Profits Not as Big as Believed.

In the Health care reform debate health insurance profits is not as great as the politicians claim. When compared to other companies or industries health insurance industry makes less than other types of insurances.

The profits of health care is about 6%  give or take a point or two. In the last year profits have barely exceed the 2 percentage points.  This has effected the credit rating of several firms which were downgraded from stable to negative. There credit agencies warn of slowing or stagnant growth of private insurance plans.

The industry is a target of politicans mainly who want a government (public) option. Democrats President Barack Obama, this would”keep insurance companies honest.”

“I’m very pleased that (Democratic leader) 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-CA, who also welcomed the attention being drawn to insurers'”Obscene profits.”

“Keeping the status quo may be what the insurance industry wants their premiums have move than doubled in last decade and their profits have skyrocketed.” Maryland Representative  Chris Van Hollen, member of the Democratic leadership.

“Health Insurance companies are willing to let the bodies pile up as long as their profits are safe.” A MoveOn.org ad.

Forbes Magazine place the health insurance industry 35th because the 2.2% margins. Medical products and drugs are more profitable.

Railroads (sans Amtrak) make a profit of 12.6%.  Network and communication equipment 20.6%.

The two most profitable firm health insurance Health Spring 5.4% profit margin. United Health Group had a 5% profit margin.

But compared to other products and services for example: Tupperware 7.5%, Yahoo 5.9%, Hershey 6.1%; Clorox 8.7%, Molson Coors 8.1%, and Yum Brand(parent of KFC, A&W, Taco Bell, and Pizza Hut)8.5%

AP via My Way News

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