Why is it that the profit margins of these Medical Insurance companies are

[Sperk]

never brought into the discussion. It makes me so crazy every time this issue comes up and NO ONE talks about how much profit the insurance companies are making. I mean are they just barely making a profit even with these huge premiums the doctors have to pay? Are the making moderate profits and should not be expected to lower their premiums for all these doctors who want the "share their love with women"? Or are they making huge profits and the doctors should demand they lower their profits to make their premiums more affordable and stop whining about these lawsuits. Or is it something in between? I don't know because NO ONE will discuss it!!!!!!!! It's making me crazy.

[Liberal Veteran]

1. I think they are a MAJOR part of the problem in this country...

...with healthcare.

It amazes me that pooling our money to provide "common defense" is considered wildly patriotic, yet pooling our money to provide "common public healthcare" is consider anti-American.

[kanrok]

2. ISMIE, the largest med mal insurance carrier in Illinois

made 19 million in profit last year.

[cosmicvortex20]

5. 19 mil isnt a lot of money for a buisness

Its a lot for a person mind you, but for a country with a lot of billion dollar buisnesses, its not a lot.

[kanrok]

9. It;s a lot when these morons are claiming that they are losing money

hand over foot because of "frivilous" lawsuits. This profit is the "reported" profit, after providing generous bonuses to top level employees.

[Eye and Monkey]

10. Yes but that's one insurance carrier among many, in one state

see where that goes?

[cosmicvortex20]

3. I think the assumption is they have a large margin.

and maybe they do, but the better question is -- why isnt competition driving the prices down? Whats stopping it?

[camero]

4. Agreed

Frankly, making profits off of illness and injury is rather ghoulish, don't you think?

[cosmicvortex20]

6. Not really, funeral homes work for profit.

Nothing wrong with that.

[camero]

8. That's death

That's different picking a casket for a loved one that's died as opposed to determining who gets help by how much money they make and can give. It amounts to causing death when the person can't pay.

Nice strawman.

[Name removed]

12. Deleted message

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[camero]

13. A casket is different from a life saving drug

Or do you just not get it? Nothing ghoulish about honoring someone and making sure they get a proper burial.

[cosmicvortex20]

14. Profiteering off the dead is ghoulish period....

you can have your own opinion about it if you want to.

[camero]

16. So how is there nothing wrong with making a profit off the sick?

Since that's your POV.

[Name removed]

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[camero]

20. I'm a troll?

You're the one saying that making a profit off of illness is not ghoulish. I asked why it isn't. What's the matter? Why can't you answer that?

[havocmom]

7. Insurance companies make their $$ by investing premium payments

in the stock market! When the market is good, rates do not rise so fast. When the market does not perform well, insurance rates go up. Did you think it was a coincidence that doctors's malpractice rates climb the same time homeowners, auto and other types of liability rates go through the roof?

It's STILL the economy!

[KT2000]

18. Yes - the way they keep books

as I understand it is different - a lawyer I know referred to it as keeping two sets of books.
That is why everyone needs to get on the same page as to what they are talking about when they say profits and losses.

Still - 1/3 of medical costs go for administrative costs. A referral as required by the company generates electronic messages, hard copies to be mailed, and phone calls from the preferred provider. The referred phycian's office must generate even more electronic mail, hard copies to be mailed and possibley phone calls. All this to make the friggin' appointment - this does not count tests and results. Ask a pharmacist how much time they spend on meeting insurance co requirements as opposed to filling prescriptions.

How many people must be hired in a doctor's office to comply with a variety of insurance requirements?
One way they keep costs under control is to limit care but force the doctor to pay more to keep up with insurance requirements.

Doctors even have to hire people to get payment from the insurance co's because some routinely stall payments to doctors.
NUTS!
Disgrace!

[GodHelpUsAll2]

11. Insurance

skyrocketed in part because the stock market tanked. Sure there are claims, sure they pay out money. It's the same as it is with car insurance, homeowners ins. etc. They collect all this money in premiums. They pool a lot of it to pay out claims but they also invest a LOT. When the stock market tanked they lost a shit load of money. Now we, the public, along with government bailouts re expected to cover their losses. Which in my opinion is a huge steaming pile of shit. No one bailed me out when my 401K went straight down the toilet.

[MisterP]

15. I recall that malpractice continues climing in tort-reformed states

[dflprincess]

19. Another expense that is never looked at is the commissions

paid to Insurance Agencies for the health care policies they sell. I believe the New York State Attorney General has filed suit against a couple insurers (Cigna is one - I can't remember the other) for some kind of crooked deal they had with some of the larger agencies selling their products.

[Nikia]

21. They seem to have unlimited profit potential

There is nothing that an individual values more than their life, personally. For most other economic goods and services, there are other options. There is nothing we can substitute for saving our life. Saving the life of a seriously ill or injured person often is expensive. Because of that, people buy insurance. Many people buy insurance that is subsidized by their employer. Most people, especially if they have a family, will buy insurance. They will buy it no matter how high the price goes. There would be some limit, but people have continued to pay for big increases. The whole industry can charge enough to continue to make good profits when prices go up. Most other industries do not have that luxury. For example, if the price of making cheese goes up and companies raise their prices, demand for cheese goes down. Demand for health insurance doesn't go down. This is something that shouldn't be left for the market.