"You Lie"
WASHINGTON (AP) - Quick quiz: What do these enterprises have in common? Farm and construction machinery, Tupperware, the railroads, Hershey sweets, Yum food brands and Yahoo? Answer: They're all more profitable than the health insurance industry. 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."
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.
Insurers are an expedient target for leaders who want a government-run plan in the marketplace. Such a public option would force private insurers to trim profits and restrain premiums to compete, the argument goes. This would "keep insurance companies honest," says President Barack Obama.
The debate is loaded with intimations that insurers are less than straight, when they are not flatly accused of malfeasance.
They may not have helped their case by commissioning a report that looked primarily at the elements of health care legislation that might drive consumer costs up while ignoring elements aimed at bringing costs down. Few in the debate seem interested in a true balance sheet.
But in pillorying insurers over profits, the critics are on shaky ground. A look at some claims, and the numbers:
THE CLAIMS
_"I'm very pleased that (Democratic leaders) will be talking, too, about the immoral profits being made by the insurance industry and how those profits have increased in the Bush years." House Speaker Nancy Pelosi, D-Calif., who also welcomed the attention being drawn to insurers'"obscene profits."
_"Keeping the status quo may be what the insurance industry wants their premiums have more than doubled in the last decade and their profits have skyrocketed." Maryland Rep. Chris Van Hollen, member of the Democratic leadership.
_"Health insurance companies are willing to let the bodies pile up as long as their profits are safe." A MoveOn.org ad.
THE NUMBERS:
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.
UnitedHealth Group, reporting third quarter results last week, saw fortunes improve. It managed a 5 percent profit margin on an 8 percent growth in revenue.
Van Hollen is right that premiums have more than doubled in a decade, according to a Kaiser Family Foundation study that found a 131 percent increase.
But were the Bush years golden ones for health insurers?
Not judging by profit margins, profit growth or returns to shareholders. The industry's overall profits grew only 8.8 percent from 2003 to 2008, and its margins year to year, from 2005 forward, never cracked 8 percent.
The latest annual profit margins of a selection of products, services and industries: 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.

Sounds like there are more then a few gold diggers in Alaska,Stevens was a sell out to the mighty dollar (Oil dollars everywhere) and should have gone to jail for his house remodeling job,Palin had to quit her job as Gov,of Alaska,she claimed she having a hard time defending herself from all the claims filed against her,and she had to sell out to her book publisher,to pay her lawyers bill.My guess is that her name is on the minds of many in Alaska,who she did favors for and then had to reward her.Like the house that was built while a questionable arena that Palin just had to have was being built.

FR: Joe Lieberman, whom The Hill calls "one of a handful of Senate wild cards in this fall's healthcare reform debate," said his biggest concern is what it would do to the national deficit.


So taxing people to death is okay with Joe L.?

Looks like Reid is just ignoring all those bills that came out of the Senate committees and is just doing what ever he feels like. Lets hope Harry has a few retirement plans thought out, he's going to be needing them in a little over a year.

_"I'm very pleased that (Democratic leaders) will be talking, too, about the immoral profits being made by the insurance industry and how those profits have increased in the Bush years." House Speaker Nancy Pelosi, D-Calif., who also welcomed the attention being drawn to insurers'"obscene profits."
_"Keeping the status quo may be what the insurance industry wants their premiums have more than doubled in the last decade and their profits have skyrocketed." Maryland Rep. Chris Van Hollen, member of the Democratic leadership.
_"Health insurance companies are willing to let the bodies pile up as long as their profits are safe." A MoveOn.org ad.
All lies brought to you by the DNC

Congratulations to Harry Reid for showing some spine and giving the American People a Public Option as a health care insurance choice.  While I am anxious to see the details of Harry's version of this essential element, he deserves credit for showing courage under fire...

As for Joe Lieberman, whom The Hill calls "one of a handful of Senate wild cards in this fall's healthcare reform debate," said his biggest concern is what it would do to the national deficit. “

If Senator Lieberman is really concerned about deficits, he will be supporting this bill and trying to eliminate the opt out provisions for states on the Senate floor.  He will also be trying to expand the Public Option to make it a choice available to all Americans, including those who are covered by employer sponsored health insurance plans.  Every American should have the ability to choose the Public Plan if they so desire...

Everyone knows it's full of lies and doesn't stand a snowball's chance in hell of passing."

His billl is ready for what?  The shredder?  Better have a good size shredder to handle a piece of crap that large

Sure going to be a LOT of new faces in Congress over next few years since they are ignoring the majority of the American ppl who do NOT want this.  The attitude is sort of like when you mother said "Don't ask me why."  Jerks.

Health insurance companies have never been forthcomming about their accountng policies and proceedures and about their profits and losses.  I take this report with a very big grain of salt.

So...we are back to Senator Lieberman.  I would like to remind everyone that is upset with this Bill is the Opt Out is not a bad idea and will force states to take a look at whether the Public Option Kick In will work for them or not.  Remember that line that "All Politics Are Local" and what may work for one state, may not work for another.  So, I can see where the W.H. is going with this, and why they like it.

I know one thing about health insurance.  If you work for a small company that does not provide it or are self employed and make low or average wages you are screwed.  It just is not affordable.

Silver lining for my fellow progressives if (hypothetically) the opt out public option is the final bill that gets passed.  In states that refuse it, progressive candidates will have a weapon against their conservative incumbent opponents.  "This guy doesn't want you to have health care.  This guy is in the pocket of big business and doesn't care if you live or die."  I guarantee progressives will sweep into office riding the wave of those 30 second commercials and we will still have a very real shot at the full public option or better yet, single payer.

Mike, texoma

These are public companies, sure they can "cook" the books, but are you saying you trust the government’s data more than an accounting validated annual report?  I just think instead of trying to take such strong stands on either side, we should look at the data in realistic terms.

If the insurance companies are making narrow profits without insuring a all health conditions does it not make sense that when they are required to cover all medical conditions it will cost more?  Also, if we think that the government can do this in a more efficient manner than the private sector, why have they not been able to prove that ability with any other program the government is involved in?  Simply stated, name one government program (Republican or Democrat) that has ever come in at, or even near, the budget that was originally written.

Again, I am not trying to take a position on either side, but simply asking questions whose answers could maybe lead us to a good overall healthcare system (and we do need one).

no on national health care:

Read the polls genius.  The majority of Americans DO want this.

The states "opt out" public option is a good deal.  GOOD JOB DEMS! This will not only lower prices, but pin point those that don't have the American peoples' best interest in mind at a state level. It's going to be fun to see the state politicians try to explain why it's better to deny the people in his/her state why it's better to just keep padding the insurance companies’ pockets. This is rather brilliant if you think about it, a choice that leaves the politicians with no choice but to side with us (The American people).  

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