Viewing entries tagged with 'Profits'
FACT CHECK redux: The Facts About Health Plan Profits
Posted by The Campaign on February 11, 2010 at 7:05 AM
Health plan profits continue to be a source of debate in the larger conversation about health care reform. While there has been focus on the levels of profits, many independent experts continue to note that health plan profits are not a key driver of increasing health care costs. Below are some key points on health plan profits and fact checks setting the record straight:
Fortune 500 puts the health plan industry profits at 2.2%, 35th on the list. This is below other sectors of the health care industry. Click here for the full list.
For every dollar our nation spends on health care, less than one penny goes towards health plan profits. A sincere cost-containment discussion would focus on the other 99 cents. Check out this document which sets-the-record-straight about health plan profits.
ABC News reports on the attempt of some to vilify health plans by focusing on health plan profits, but as this article points out profits are neither as high as some claim nor are they the main driver of health care costs.
- “…the companies' profits still represent a miniscule percentage of the $2.5 trillion Americans spend every year on health care.”
- “‘Insurance company profits in the large picture have very little to do with the overall rising cost of health care,’ said health care expert Henry Aaron, a senior fellow at the Brookings Institution.”
The AP does a quick fact check on the claims about health plans’ profits. The article notes that many of the claims being used in the debate are misleading and in some cases wrong. - “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.”
- “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.”
- “…in pillorying insurers over profits, the critics are on shaky ground.”
According to Ezra Klein, a blogger for the Washington Post:
- "The insurance industry is not a particularly profitable industry."
- Health plans are "...the 86th most profitable industry as measured by profit margins, with an average margin of 3.3 percent."
- "...it's hard to see how [health plan profit margins of 3.3%] are a primary driver of health-care spending, much less the growth in health-care spending."
Fact Check: Another Media Outlet Sets the Record Straight on Health Plan Profits
Posted by The Campaign on November 12, 2009 at 11:56 AM
ABC News reports on the attempt of some to vilify health plans by focusing on health plan profits, but as this article points out profits are neither as high as some claim nor are they the main driver of health care costs. Key excerpts are below: “…the companies' profits still represent a miniscule percentage of the $2.5 trillion Americans spend every year on health care.”“‘Insurance company profits in the large picture have very little to do with the overall rising cost of health care,’ said health care expert Henry Aaron, a senior fellow at the Brookings Institution.”
FACT CHECK: Associated Press – Health insurer profits not so fat
Posted by The Campaign on October 25, 2009 at 2:16 PM
The AP does a quick fact check on the claims about health plans’ profits. The article notes that many of the claims being used in the debate are misleading and in some cases wrong. Here are some key excerpts from the article:
“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.”
“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.”“…in pillorying insurers over profits, the critics are on shaky ground.”
“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 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.”
For the full article, click here.
FACT CHECK: Health Plan Profits In Perspective
Posted by The Campaign on October 08, 2009 at 12:56 PM
While some claim that health plans make the most profits, here are the facts:
Fortune 500 puts the health plan industry profits at 2.2%, 35th on the list. This is below other sectors of the health care industry. Click here for the full list.
According to Ezra Klein, a blogger for the Washington Post:
- "The insurance industry is not a particularly profitable industry."
- Health plans are "...the 86th most profitable industry as measured by profit margins, with an average margin of 3.3 percent."
- "...it's hard to see how [health plan profit margins of 3.3%] are a primary driver of health-care spending, much less the growth in health-care spending."
For every dollar our nation spends on health care, less than one penny goes towards health plan profits. A sincere cost-containment discussion would focus on the other 99 cents. Check out this document which sets-the-record-straight about health plan profits. Also, check out Fortune Magazine's recent industry profitability rankings. In 2008, health plans had a profit margin of 2.2% and are 35th on the list.
FACT CHECK: Health Plan Profits and Administrative Costs
Posted by The Campaign on September 29, 2009 at 11:25 AM
Today's Senate Finance Committee markup focused on health plan profits and administrative costs. Here are the facts about these two issues:
For every dollar our nation spends on health care, less than one penny goes towards health plan profits. A sincere cost-containment discussion would focus on the other 99 cents. Check out this document which sets-the-record-straight about health plan profits. Also, check out Fortune Magazine's recent industry profitability rankings. In 2008, health plans had a profit margin of 2.2% and are 35th on the list.
As part of the Fortune 500 list, Fortune magazine looks at industry profit margin. Fortune reports that the "Health Care: Insurance and Managed Care" sector had a profit margin of 2.2% in 2008. To see where this puts the health plan industry on the list, click here.
The Heritage Foundation released a research paper comparing administrative costs between Medicare and private health plans.
Two important facts to consider: *****
MUST SEE TV: AHIP's Robert Zirkelbach sets the record straight on health plan profits
Posted by The Campaign on September 14, 2009 at 7:48 AM
AHIP's Robert Zirkelbach appeared on Fox & Friends over the weekend. On the show he pushed back on the misinformation about health plan profits.
Check out the clip below:
FACT CHECK Video: CBS Evening News on Health Plan Profits
Posted by The Campaign on September 11, 2009 at 9:40 AM
Last night, CBS Evening News reported on the role health plans are playing in the health care reform debate. One part of the story focused on health plan profits and the misinformation being spread about health plan profits. Check out this fact check video which sets the record straight:
FACT CHECK: Ezra Klein on Health Plan Profits
Posted by The Campaign on September 10, 2009 at 6:57 AM
The Washington Post's Ezra Klein, who's blog on washingtonpost.com is a must read, examines the debate about health plan profits. In Klein's post entitled "Profit and the Insurance Industry" he makes several important observations and fact checks on the rhetoric surround health plan profits:
"The insurance industry is not a particularly profitable industry."
Health plans are "...the 86th most profitable industry as measured by profit margins, with an average margin of 3.3 percent."
"...it's hard to see how [health plan profit margins of 3.3%] are a primary driver of health-care spending, much less the growth in health-care spending."
For Klein's full blog post on this click here, and for his full blog click here.
FACT CHECK Redux: Putting Health Plan Profits in Perspective
Posted by The Campaign on August 19, 2009 at 2:00 PM
For every dollar our nation spends on health care, less than one penny goes towards health plan profits. A sincere cost-containment discussion would focus on the other 99 cents. Check out this document which sets-the-record-straight about health plan profits. Also, check out Fortune Magazine's recent industry profitability rankings. In 2008, health plans had a profit margin of 2.2% and are 35th on the list.
Check out this chart from the American Hospital Association examining health plans' profit margins from 1990-2006.
AHIP's PERSPECTIVE: Focus on the Other 99 Cents
Posted by The Campaign on July 28, 2009 at 11:02 AM
From a Reuters' story on the ongoing health care reform debate and the focus on health plans' profits. From the story:
"For every dollar our country spends on health care, less than one penny goes towards health plans' profits. In order to make health care more affordable for families and small businesses, we need to focus on the other 99 cents."
-- Robert Zirkelbach, AHIP spokesman
For the full story, click here.
