Posted on 10/25/2009 7:56:49 PM PDT by tobyhill
Wow - and it’s on Micro Soft’s National Barack Channel?
Totally wrong, but interesting.
No surprise here... Maybe they have run out of those who to blame... Oh well, they will continue to try and the idiots on the left will continue to believe them...so another round for the gullible liberals...geez...
As I posted on another thread (now dead) on this subject:
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While, in many cases it’s both a yes and a no!
Most states regulate what “monoply insurers, like Blue Cross” can recieve as profits on their investment.
So the insurers, like other regulated utilities, like to have a high investment base, so they can then justify an adequate return on this investment base.
This leads to requesting higher premiums, or utility rates, on the inflated investment base.
And as the required cash reserves that all insurance companies must maintain - are part of the investment base. As the Fed lowers target interest rates, the return on the cash reserves - a large component of insurance profits - dries up, which then allows the insurancee company to justify higher premiums.
As premiums rise, the company generates more free cash flow to either invest or to reward key employees, or to lobby, etc.
So the metric of low profits per unit of revenue becomes a key goal of the insurance industry, as the lower return on revenue, will trigger future rate increases under regulatory approval, for more unnecessary investment, to repeat the previous cycle.
Think about it. How many insurance companies are housed in shabby facilities? How many pieces of mail do you receive from them monthly - one for every claim, policy update - all totally unnecessary. Send out one summary a month, or use our e-mail - but the insurance company has little incentive to save $1.00 per mailed page, as the cost savings would improve their bottom line - hurting their request for premium rate increases.
It’s bad now, think of the absolute disaster it will be if the government takes over healthcare, especially with SEIU members in each office!
News flashes:
1. Health insurance companies only make 5% profit.
2. The “public option” if it is passed will be run by private insurance company/companies, just like Medicaid and Medicare are run that way now (BCBS in Michigan)
3. If regulation of health insurance is taken from the states and given to the Feds, then all health insurance companies compete as “public options”. Watch the people in, say, New Jersey jump on plans that cost 1/2 their current plan!!
**Totally wrong, but interesting.**
Wrong only in that most Insurance Co.’s net Profit Margin are normaly between 1% and 4% ...
unless totally wrong you mean the OBSCENE PROFITS the INS CO’s make.. in which case ...
Now where did you get you accounting degree???
Then ENLIGHTEN ME with your TALKING POINTS and don’t call me names... and I got my Accounting Degree from CORNELL ,,
SIR!
Now as to the name calling I saw none, and as to talking points they must be your head I don't have any and net profits is a meaningless term without the foot notes.
“unless totally wrong you mean the OBSCENE PROFITS the INS CO’s make.. in which case ...”
What I see in huge companies like BCBS-Michigan is that they are sloppy, bloated, bureaucratic organizations that resist any change. BCBS-MI is so heavily unionized that it is like a State of Michigan dept office, or maybe the USPS.
I’m hoping that if barriers to competition are eliminated then they’ll be forced to become slimmer, leaner, meaner companies.
BlueCrossBlueShield is a Regulated MONOPOLY (it’s profit is regulated by law).. like the Electric Company... the others are GOVERNMENT AGENCIES and are totally worthless..in fact as well as for comparison.
“BlueCrossBlueShield is a Regulated MONOPOLY (it’s profit is regulated by law).. like the Electric Company... the others are GOVERNMENT AGENCIES and are totally worthless..in fact as well as for comparison.”
Well, you’ll tell me to stick my comments too...
...but having sold health insurance, and worked for 3 state governments now, I can definitely make comparisons.
The attitude of each is of an entrenched bureaucracy. Each one resists any change, and only seeks to devour more money. And, in both cases, you see the unionized employees working for Dems to be elected.
In the case of BCBS-Michigan, their biggest contracts always have been to unions (ie, UAW) so therefore they are reluctant to do anything to rock that boat, including firing their bloated unionized workforce and (essentially) doing what Ford and other heavily unionized companies have done (kinda like asking governments to get rid of their unions?).
BCBS-Michigan might be non-profit, but as was pointed out, they simply divert to bury profits. One of their diversions is into that bloated workforce, diverted not due to management decisions, but threat of union action (and loss of union business). Kinda like soaking up a government budget surplus?
What would happen if I could buy my health insurance from any of the BCBS affiliates, or United, or Pru, or Kaiser, or one of the thousands of smaller plans? I bet I could get a better deal, certainly better than I could get if I was a resident of NJ (or currently get with Michigan rates).
Finally, in the cruelest ironies, the “public option” plan would be administered by one or more private insurance companies, like Medicare and Medicaid are usually done by many states.
Gosh, no comparison?
We are basically on the same page... Bureaucracies SUCK .. private and Government.. Although I will PUT GOVERNMENT at the TOP of the SUCK LIST. And the LAST THING I want is my Dr.’s Office Looking like the DEPARTMENT OF MOTOR VEHICLES.
There are around 1300 INS CO’s but I can only buy ins from 5 or 6 .. so screw them... they only way I’ll buy that is by FORCE of GOVERNMENT... haven’t had any for 35 years.. and ALL my MED Expenses (including Family AND non covered Electives) for the same time period.. I’ve spent enough money to buy 3 years of INSURANCE.... screw that S***
Stop giving me MEANINGLESS GIBBERISH and I won’t treat you like a stupid LIBERAL MORON..
now..
Answer the question
Also it totally neglects the fact that many insurance products lines have bill back privilege for exposure and it is impossible for them not to make a profit, it is a rigged game.
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