Insurance Agent Forum

[Rivers1]

FACT CHECK: Health insurer profits not so fat - Yahoo! News

Hmmmm...

All that griping about exorbitant profits is another fantasy politics ploy. Who knew?

[GreenSky]

You neo-cons make me sick. The figures are after the millions taken out for executive salaries. If you get rid of that overhead, the average profit of health carriers is 107%. Yes, they create more profit than they collect in premiums! They are completely evil and must be stopped.

Rick

[Mac1958]

Originally Posted by GreenSky

You neo-cons make me sick. The figures are after the millions taken out for executive salaries. If you get rid of that overhead, the average profit of health carriers is 107%. Yes, they create more profit than they collect in premiums! They are completely evil and must be stopped.

Rick

By the way, from Yahoo! News, current profit margins:

Healthcare Facilities REITs - 28.0% (#1 Industry!)
Major Drug Manufacturers - 16.7%
Medical Instruments & Supplies - 8.8%
Medical Laboratories & Research - 8.1%
Drugs/Generic - 6.5%
Those Evil Health Care Plans - 3.3%

The fact is, the problem is the rising COST of care, not the insurers. Current trends for premiums mirror current trends for the cost of care. But the insurance industry makes a fine boogeyman, so let's not allow facts to get in the way.

Once again - this ain't about health care, it's about politics. Power, control.

...

[ins.dave]

Originally Posted by Mac1958

By the way, from Yahoo! News, current profit margins:

Healthcare Facilities REITs - 28.0% (#1 Industry!)
Major Drug Manufacturers - 16.7%
Medical Instruments & Supplies - 8.8%
Medical Laboratories & Research - 8.1%
Drugs/Generic - 6.5%
Those Evil Health Care Plans - 3.3%

The fact is, the problem is the rising COST of care, not the insurers. Current trends for premiums mirror current trends for the cost of care. But the insurance industry makes a fine boogeyman, so let's not allow facts to get in the way.

Once again - this ain't about health care, it's about politics. Power, control.

...

Easy target.
Just keep things it easy and quick and simple.
Boogieman bad. Obama good. Profit bad. Free good.
Industry bad. Govt. good. Tell me a story mommy.
Immigrant good. Rich people bad.

[somarco]

Anyone making big bux is a target these days. Most of the country cannot tell you the difference in profit and profit margin. They will point to the billions carriers make in profits but when you ask them how much it is as a percent of premium they have no clue. Even when you tell them it is 3 - 4%, and explain if the carriers made NO profit premiums would drop 3 - 4% their eyes glass over and they just say it doesn't matter. Health insurance companies should not make any profit.

I have had prospective clients ask for a quote from a non-profit carrier. The only one we have is KP. I show them the quote, and (most of the time) it is 10 - 15% higher than comparable plans.

Not so surprisingly they will look at other for profit carriers.

When gas prices were $4 a gallon these same folks were screaming about oil company profits and CEO salaries. I notice gas has jumped $0.30 a gallon in the last 2 weeks so it won't be long before that drum beat will start again.

Maybe Obama will give us gasoline reform.

[GreenSky]

Originally Posted by somarco

Maybe Obama will give us gasoline reform.

Isn't that part of the cap and tax?

Rick

[bobson]

Originally Posted by Rivers1

FACT CHECK: Health insurer profits not so fat - Yahoo! News

Hmmmm...

All that griping about exorbitant profits is another fantasy politics ploy. Who knew?

I'm my state the two largest health insurers which account for over 75% of the market are not-for-profit. How does that fit into the Obamacare equation?

We only have a handful of health insurers because of ridiculous mandates.

[MedicarePlanSolutions]

Originally Posted by bobson

I'm my state the two largest health insurers which account for over 75% of the market are not-for-profit. How does that fit into the Obamacare equation?

We only have a handful of health insurers because of ridiculous mandates.

More ridiculous mandates are how the Black Jesus will save our healthcare system!

[Full Throttle]

I'm my state the two largest health insurers which account for over 75% of the market are not-for-profit. How does that fit into the Obamacare equation?

We only have a handful of health insurers because of ridiculous mandates.

In my state, by state law, you need to be a non-profit carrier to operate here. As a result, only three main players (a fourth small tier carrier), higher premiums, and rates increasing just as fast as the current national trend. Let me repeat, insurance is only the funding mechanism for the helath care system, not the cost driver. You can't lower the funding without first lowering the cost drivers.

[ABC]

Originally Posted by GreenSky

You neo-cons make me sick. The figures are after the millions taken out for executive salaries. If you get rid of that overhead, the average profit of health carriers is 107%. Yes, they create more profit than they collect in premiums! They are completely evil and must be stopped.

Rick

Explain to me why small regional carriers are having a hard time surviving if there is such huge profits.

American Community just pulled out of the 50+ group market.
After years of trying to be profitable in that market.

[somarco]

I am still trying to figure out how Coventry is making it in the under 65 major med business. While a good size company, their individual market is structured more like the (old) BCBS model on a state by state basis.

There is no way they can support the block they have here in Georgia at the rate level they have used for the last 3 years. I cannot figure out why it has not blown up already.