Health Insurance Profits

Obama, Pelosi and Reid are painting the insurance companies as greedy pirates, making obscene profits.

The facts seem to indicate that, in reality, health insurance margins (profit) is somewhere between 2% and 6%.

Not only is this not piracy, but this fact has other implications:

If you think about it, this implies that the insurance companies are very efficient in their competition with each other. They would make more money in that field if it was there to be made. This implies that they cannot lower rates much lower without operating at a loss. Competition has driven the profits down to this level! This strongly makes the case that current costs are close to the minimum possible to operate the system.

If so, requiring insurance companies to cover everyone, without regard to prior conditions, simply must cause rates to rise from their current level.

This also strongly supports the idea that a ‘public’ option which could be run by the government at a loss (since we’re all paying for it) would in fact drive the insurance companies out of the health care business, very quickly.

Once the insurance companies are gone, there is no mechanism to limit what the government charges for their insurance. The government has the power of taxation. Of course, the government won’t call it taxation – they’ll just call it your insurance bill. But you’ll go to jail, if you don’t pay.

I don’t see how any government revamping of health care is going to save us any money, nor do I see how it will improve health care.

Personally, I like the current situation – where buying insurance is voluntary. If the Democrats have their way, we won’t have any choice.


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