Las Vegas Examiner

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.

A more specific example:

AP

UnitedHealth Group, reporting third quarter results last week, saw fortunes improve. It managed a 5 percent profit margin on an 8 percent growth in revenue.

These are last year’s profits in a severe economic recession. There profits rank them placing them 35th on the Fortune 500 list of top industries.

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CHESSNOID

In fairness and debate, President Obama’s healthcare plan is going to bankrupt small business. Forcing employers to pay an 8 percent penalty or pay for healthcare will drive little hiring or the closing of the doors.
I agree there is a healthcare issue,however, the insurance companies profit margin is only 2%.
Billing from doctors and hospitals is a big culprit of the problem. People with insurance are charged double or triple the rate as opposed tosomeone who does not have insurance.This is to get back what their not making on the uninsured. Hospitals should be NON Profit.
I agree we need to do more for those who cannot afford their own. This bill however, strips away people’s choices and will eventually do away with private healthcare all togethor. The bill is written in such away that private insurers will not be able to meet the mandates of the bill causing everybody to go into government control. I don’t know about you,but I have worked in government along time and they do not run business very well and overall our treatment modalities will suuffer greatly.