Saturday, October 31, 2009

How much should insurers pay?

Since the Obamunists took over the country last fall, everything I've heard from these people is how big and ugly and greedy insurance companies are.

But instead of parroting that talking point I decided to do something unheard of to a liberal. Look it up.

Now let's play a game.

What percentage of premiums should be paid out in claims?

Keep in mind that you have to pay processors, sales staff, office space etc. Oops, don't forget the taxes.

So what do you think is a fair amount for the insurance companies to pay out in claims.

50% ?

60% ?

70% ?

80% ?

90% ?

100% ?

What's fair in the world of a liberal?

Here's what Humana, the Gekko's insurance carrier paid out............ 84.5% The net profit margin (income after all expenses are paid) accounted for 2.3% of the premiums.

I don't find that excessive. Especially, when you consider that the government takes in half of what the company takes in. And what exactly did the government(s) do for their 345 million? Not a damn thing.

I also checked WellPoint and they paid out a 84.4% in premiums. Again, various government entities found a way to collect 630 million in taxes to do absolutely nothing to deliver heath care and the company made a whopping 4.3%.

None of that sounds outrageous to me.

But even before you read the numbers he one way to tell if companies are making enough money. How many companies are getting into the business v. getting out.

I'm guessing that you'll find that more companies are getting out than getting in.

1 comment:

Anonymous said...

Another thing I would mention to liberals is that there is no law that prohibits a non-profit group from forming an insurance company. That's right. No need to wait for heath care reform. It this very moment, any private citizen who thinks an insurance company should pay 100% in claims and take no profit has every right to set up an institution to do just that.

One would think with all the public "support" there is for a benevolent institution there would be many people willing to contribute to such an effort.

This would be a liberal owned and operated enterprize. How long would it last? About as long as it would take the first liberal to realize that their personal effort would be involved.

It's about at that moment that they will email their congressman asking for the government (i.e. taxpayer) to fund their work.