October 07, 2009

Health Care Reform

One of the mantras continually coming from the Left side of the aisle about how EVIL the Big Health Insurers are is how they continually refuse to pay for procedures of their claimants to maximize their profits...

Two things to remember:

1) The HIGHEST net profit made by ANY Insurance company in 2007 was 3%...name any other business that operates on that low a profit margin. (most grocery stores operate on at least a 4-5% margin, if they want to stay in business)
The MSM and the Leftists trying to take control of our health care system always report the profit made by a particular company, but unless that figure is expressed as NET PROFIT MARGIN (ie, that profit that is left after total expenses,expressed as a percentage of funds risked) that figure can highly misleading. Saying company X "made $3Billion in profits" means nothing unless you also consider how much company X RISKED in that same time span to earn that profit. Remember that Government does not EARN one red penny itself, it can only tax YOU to get revenue to spend; and if it falls short of it's needed operating capital (UNLIKE an Insurance company, which would be forced out of business BY LAW if it's on hand assets fall below a mandated level), it simply raises the taxes you are required to turn over for it's use.

2) Just WHICH insurance entity carrier refused payment for treatment the greatest amount? According to the AMA, in 2008 it was Medicare...by a margin of almost DOUBLE (1.7%) of ALL other major Insurance entities COMBINED:

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So the next time you hear about a politician pontificate about a "heartless Insurance Company", remember that to be TRULY "heartless"; you need the power of Government to REALLY achieve it.

Posted by Delftsman3 at October 7, 2009 04:42 PM | TrackBack
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