Sorry but you’re just plain wrong. The problem even dental insurance faces is that what they’ll cover according to the plan is more than they take in, they’re banking on the people NOT using the plan to the fullest extent. My MetLife plan will pay out up to $2000 a year, but they only take in (between me and my employer) $600 a year to cover me. They’re hoping all I do is get some cleanings and maybe a filling, enough for me to consider it profitable (knowing I’m only paying a portion) but less than the total money brought in. So far the joke has been on them, my company switched to them at a bad time, years of laziness caught up with me, I’ve tickled the underbelly of the cap 3 times in 5 years, they’ve laid out over 6 grand on me and only taken in 3. The bad news for them is that those years of laziness I was on other dental plans, my company switched to them right before the troubles started. They need my company to stay on them for 5 years with nothing but cleanings for our relationship to get back in the black. Oh and for most stuff they’re paying 2/3s.
Insurance companies are still insurance companies. They still have a certain amount they take in, and they still want to not pay that much out.
That 17% profit margin you’re linking to shows MORE overhead than the 80% you refused to believe a few days ago. There’s nothing wrong with a 17% profit margin. You want to see a profit margin that’s crazy look up the fine jewelry business, every step of the process is between 300 and 500% markup, now THAT’S a profit margin.
That is Mark up not profit margin. Restaurants generaly have a 400% - 500% mark up on the food they sell. Yet, A vaste majority of them go BK in less than a year amnd Mark up is not profit, it isn’t even gross profit.
You dane to tell someone in the industry for twenty years that you knw morte about a insurance products than he does?
What an arogant ass!