Outrageous Insurance Company Profits ~ What A Bunch Of Hoes

By
Real Estate Agent

 

Recently a report was issued ranking major industries in the United States by percentage of profit.

Topping the list in 2008 for highest percentage of profits was Network and communication services. A whopping 20.4% profit on annual sales. Of every dollar spent for Internet, Cell phone service and promotional services, between 19 and 20 % is pure profit.

  • Pharmaceuticals posted profits of 19.3%.  Considering the initial cost to research and develop the array of life altering and life saving drugs produced in our country, that margin seems rather tame.


  • Railroads which includes both passenger and freight enterprises recorded 12.6% profits.


  • Household and personal products came in at 8.7%.


  • Food service industries racked up a 7.1% profit.


  • Computers and office equipment posted 4.3% profit


  • Health Insurance companies posted 2.2% annual profits


In the 2009 those same insurance providers leaped up on the list posting increased profits.
  They really have gotten good at raping and plundering the American pocket book. 

 

  • Insurance providers moved up on the list and posted record chart busting  profits of 3.3% and moved them into 86th place.


So how do you rank these industries as they relate to your life style choices?  You don't mind shelling out beau coup bucks to the Steve Jobs of the world to keep those hi tech communication toys coming atcha.

  • No one thinks twice that profits on Viagara and Birth Control products yield manufactures a 19% profit.


  • Ever consider that some of those products you purchase arrive at a retail location with an added 13% for railroad transportation?


  • When you purchase personal care items, cleaning supplies or toilet paper, those manufacturers are pocketing 8.7% on every dollar you spend.


The villains according to those pushing health care reform are those greedy heartless health insurance companies.  How much will you actually save by lowering health care premiums?  According to the posted profits you would save 3.3 cents per every dollar lowered.

So it would appear, those vilifying the insurance industry think it makes more sense to flush 8.7% down the toilet, then pay a 3.3% profit to companies safeguarding their health care needs.

http://mjperry.blogspot.com/2010/02/health-insurance-companies-rank-88-by.html

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Rainmaker
244,734
Bonnie Vaughan
Scranton, PA
CNE SFR - Buyers/Sellers - Lackawanna & Surroundin

Calvin,  I'm sure Apple executives are getting big salaries and bonuses too.  So are executives in almost every successful company in America.

The high cost of health care is not coming from the insurance company.  They are paying the bills to doctors, hospitals, and other health providers.  The escalating costs are starting there.  When hospitals charge $5 for an aspirin that's what starts the snow ball going down hill.  Cost containment has to start with the for profit hospitals and providers.

As an example,  my husbands 3 day stay in a local for profit hospital after a heart attack, which included stints cost more than my 6 months of chemo at a University - not for profit hospital.  Figure that out.

Johns Hopkins can run more cost effectively and deliver cutting edge treatment then local hospitals.  We need to start the fix at the delivery system to contain costs.

Feb 24, 2010 07:43 AM #8
Rainmaker
244,734
Bonnie Vaughan
Scranton, PA
CNE SFR - Buyers/Sellers - Lackawanna & Surroundin

Tony,  technology move so fast its hard for most of us to catch up.  I still can't master the Blackberry.  I'd need to go to college to figure out the IPhone.

Feb 24, 2010 07:44 AM #9
Rainmaker
244,734
Bonnie Vaughan
Scranton, PA
CNE SFR - Buyers/Sellers - Lackawanna & Surroundin

Michael,  that's news to me. Do a blog about it to let others know.

I have a Niece who is in being treated in the mental health system.  They have pushed more drugs on her than I can count.  She was hospitalized because she was over dosed by the Doctors, not herself.  She had a severe reaction to Lithium.

Feb 24, 2010 07:46 AM #10
Rainmaker
565,710
Mike Saunders
Lanier Partners - Athens, GA

Bonnie - maybe just a bit of parsing here. Those are pmargins margins and not actual profit percentage. There is a difference. Consider  a company that makes $100 but its cost to make that $100 is $80.

Profit % = (gross - cost)/cost. ($100-$80)/$80 = $20/$80 = 25%

Margin % = (gross - cost)/gross. ($100-$80)/$100 = $20/$100 = 20%

For after tax just change the gross to the net.

But yeah, it is pure scapegoating on the part of the demagogues.

Feb 24, 2010 11:30 AM #11
Rainmaker
832,232
Broker Nick
South Florida Real Estate & Development, Inc. - Coconut Creek, FL
Broker Nick Relocation Broker Service

The demonizing of the health insurance companies by the Obama administration should be investigated

Feb 24, 2010 11:56 AM #12
Rainmaker
662,024
JL Boney, III
Coldwell Banker - Columbia, SC
Columbia, SC Real Estate

We always have to have something to hate and it seems like the insurance companies have filled that spot for now.

Feb 24, 2010 12:52 PM #13
Ambassador
891,651
Lane Bailey
Century 21 Results Realty - Suwanee, GA
Realtor & Car Guy

I thought Obama was all about the free market.  That is what he said when he was talking with businesses.  Of course, he was all about the socialism when he was talking to the Socialists...  And all about being an @$$hole when he was talking to Congressional Democrats. 

;^ )

Feb 24, 2010 01:36 PM #14
Rainmaker
400,769
Hugh Krone
Weichert Referral Associates - Hamburg, NJ
Realtor, Sussex County NJ

Health insurance premiums are rediculous until you are the one who needs $10,000 a month worth of chemo treatments

Feb 24, 2010 03:00 PM #15
Rainmaker
354,838
Dale Terry
Yadkinville, NC

With government being the biggest user of health care in the nation, maybe we ought to see its books and determine where the money goes. 

Feb 24, 2010 11:33 PM #16
Rainmaker
1,269,507
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

The current administration is TOTALLY ANTI-BUSINESS...these "insurance companies" are SHAREHOLDERS such as MOI as well as pension funds, teacher's unions, etc....these are retirement accounts for many and this administration's BASHING is not doing themselves or the economy any good.

Lay off WALL STREET, BIG OIL, TOYOTA and HEALTH INSURANCE

Feb 26, 2010 05:12 PM #17
Ambassador
1,557,809
Karen Fiddler, Broker/Owner
Karen Parsons-Fiddler, Broker 949-510-2395 - Mission Viejo, CA
Orange County & Lake Arrowhead, CA (949)510-2395

It's ridiculous to think that at some point, they might be making a higher % than the evil oil companies :)

Mar 01, 2010 09:13 AM #18
Rainmaker
388,869
John Walters
Frank Rubi Real Estate - Slidell, LA
Licensed in Louisiana

Bonnie don't you realize that government is the way to go for a lot of people.  I dare a business try to make some money.

Mar 02, 2010 11:14 AM #19
Rainmaker
244,734
Bonnie Vaughan
Scranton, PA
CNE SFR - Buyers/Sellers - Lackawanna & Surroundin

Mike,  I report - you analyze.  Getting multiple perspectives on an issue is the goal.  I'm not as analytical as you.  Thanks for adding to the discussion.

As you said, its a play on words by those who wish to demonize the industry.

Mar 03, 2010 12:36 AM #20
Rainmaker
244,734
Bonnie Vaughan
Scranton, PA
CNE SFR - Buyers/Sellers - Lackawanna & Surroundin

Nick, what is hard to understand is:  They are demonized on one hand, and invited into closed door health care planning meetings with Baucus.  Go figure.

Mar 03, 2010 12:37 AM #21
Rainmaker
244,734
Bonnie Vaughan
Scranton, PA
CNE SFR - Buyers/Sellers - Lackawanna & Surroundin

JL,  They are useful to hate when you are trying to pass health care reform.  One has to be under a rock to think after we bailed out an industry, we would bury it.

Mar 03, 2010 12:38 AM #22
Rainmaker
244,734
Bonnie Vaughan
Scranton, PA
CNE SFR - Buyers/Sellers - Lackawanna & Surroundin

Lane,  Obama is a man of the people.  Whoever he is talking to - He Is Their Man!

Mar 03, 2010 12:39 AM #23
Rainmaker
244,734
Bonnie Vaughan
Scranton, PA
CNE SFR - Buyers/Sellers - Lackawanna & Surroundin

Hugh,  I agree with you.  I am one of those people who needed chemo.  I stated in another blog the cost of my treatment, which went on for over a year, in a University hospital was cheaper than my husbands heart attack treatment, which included a 4 day stay in a for profit hospital.

If University hospitals can offer cutting edge care at a fraction of the cost of for profit hospitals - that tells you we are being gouged at the Point of Delivery, not the insurance company.

 

Mar 03, 2010 12:42 AM #24
Rainmaker
244,734
Bonnie Vaughan
Scranton, PA
CNE SFR - Buyers/Sellers - Lackawanna & Surroundin

Dale,  I have no doubt the government pays for fraud and knows it.

Mar 03, 2010 12:44 AM #25
Rainmaker
244,734
Bonnie Vaughan
Scranton, PA
CNE SFR - Buyers/Sellers - Lackawanna & Surroundin

Wallace,  there is no one with business savvy in this administration.  I think health insurance costs could be scaled back if the outrageous charges by care givers were reigned in.

Mar 03, 2010 12:49 AM #26
Rainmaker
244,734
Bonnie Vaughan
Scranton, PA
CNE SFR - Buyers/Sellers - Lackawanna & Surroundin

Karen,  Proportionately they are really not making that much money.  Not to say internally they could not slim and reduce their expenses.

Mar 03, 2010 12:55 AM #27
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Rainmaker
244,734

Bonnie Vaughan

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