What Obscene Insurance Profits? Maybe Obama Pay Czar Should Freeze Congress Pay First Before Tarp Bail Out Companies
Who should be demonized for their pay? Hint: It might be those screaming the loudest.
Barack Obama, Harry Reid, Nancy Pelosi and their minions have attacked the health care insurance industry for making obscene profits at the expense of the people. Really? Where is the data that backs up the Democrats demonization of insurance carriers? It would appear that some simple fact checking would dispel the myths and propaganda being put out by those that support Obamacare. They need to demonize someone, who cares about facts.
In the health care debate, Democrats and their allies have gone after insurance companies as rapacious profiteers making “immoral” and “obscene” returns while “the bodies pile up.”
But in pillorying insurers over profits, the critics are on shaky ground. Ledgers tell a different reality.
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.
Check out some more of the factual numbers. Will Obama and the Democrats be demonizing them next? On the hit list next shall be the following as they dared make a profit: Tupperware Brands, 7.5 percent; Yahoo, 5.9 percent; Hershey, 6.1 percent; Clorox, 8.7 percent; Molson Coors Brewing, 8.1 percent; construction and farm machinery, 5 percent; Yum Brands (think KFC, Pizza Hut, Taco Bell), 8.5 percent.
Health insurers posted a 2.2 percent profit margin last year, placing them 35th on the Fortune 500 list of top industries. As is typical, other health sectors did much better – drugs and medical products and services were both in the top 10.
The railroads brought in a 12.6 percent profit margin. Leading the list: network and other communications equipment, at 20.4 percent.
HealthSpring, the best performer in the health insurance industry, posted 5.4 percent. That’s a less profitable margin than was achieved by the makers of Tupperware, Clorox bleach and Molson and Coors beers.
The star among the health insurance companies did, however, nose out Jack in the Box restaurants, which only achieved a 4 percent margin.
You knew this was coming when liberals in Congress moan about the money that others are making. Guess who had a better year than insurance carriers? Courtesy of Jim Hoft, The Gate way Pundit comes this precious piece of data … members of Congress enjoyed a better raise than the insurance companies this year. Congressional pay raises equaled 2.80% while those evil insurance carriers made 2.20%.
Maybe Obama should have his pay czar cut Congressional pay? After all, they have been paid by tax payer money for years and done nothing for it. How does the Congress get a raise, yet “We the People” have a near 10% unemployment?