Sunday, April 04, 2010

Health Insurance companies make bad victims

I can't take credit for that statement. Its the theme of an article by Rick Neuman, in a brilliantly written article:
Overall, the profit margin for health insurance companies was a modest 3.4 percent over the past year, according to data provided by Morningstar. That ranks 87th out of 215 industries and slightly above the median of 2.2 percent. By this measure, the most profitable industry over the past year has been beverages, with a 25.9 percent profit margin. Right behind that were healthcare real-estate trusts (firms that are basically the landlords for hospitals and healthcare facilities) and application-software (think Windows). The worst performer was copper, with a profit margin of minus 56.6 percent.

What I love about it is that Rick lets the air out of the whole idea that heatlh insurance companies are robbing us blind compared to other companies.
Unfortunately, this article (written in August of 2009) did not fall neatly into the narrative, so it was blithely ignored by the administration and the democrats following it.

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