I realie ive whined a lot about this but cmon its fun and informative when i whine :)
Advocates of increased government involvement in health care frequently cite the profits of private health care providers as a major part of the costs of health care.
An example of the criticism is that of Representative Anthony Weiner (D-NY), speaking on the Rachel Maddow show, who said, speaking of proposed legislation that would heavily tax the health insurance industry:
“Well, the one behavioral change we are clearly not going to see is the insurance companies aren’t going to suddenly start saying, ‘You know what, we are going to stop making 30 percent profits and cut it down to 10 percent or 5 percent because of this bill.’ “www.msnbc.msn.com/id/33293461
So are the insurance company profits really 30%, as claimed?
rated the health insurance industry as the 35th most profitable of 53 industries surveyed for 2008:
35 Health Care: Insurance and Managed Care 2.2%
In 2006, in better economic times, health insurance company profits were 7.1%.money.cnn.com/2009/09/01/news/economy/health_insurers_ceo_pay/index.htm
Total insurance company profits were $12.87 billion in 2007 and $8.40 billion in 2008 http://www.politifact.com/truth-o-meter/statements/2009/oct/07/jay-rockefeller/rockefeller-says-health-insurer-profits-have-risen/
Total health care spending in the United States was $2.2 trillion in 2007. Isn’t that less than only double the proposed the bill?
Insurance company profits were therefore 0.59% of total health care costs in 2007. Since total costs have been rising at about 6%, the insurance company profits would be about 0.36% of total health care costs in 2008.
Because insurance company profits are much less than 1% of health care costs, they are not a major factor in healh care costs in the United States.
SO to say that they are is preposterious. What is responsible than? That is a good question.
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