It seems that Ms. Pelosi and her fellow Dems didn’t do their homework before chastising the insurance companies for their “obscene profits.” Do you think we’ll see the Democrats going after Big Beer, Big Chocolate, and Big Yahoo next? I’m not holding my breath. Remember folks, it takes a villian…or village…or something.
WASHINGTON (AP) – 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.
Read the rest of the article here: