From AP:
FACT CHECK: Health insurer profits not so fat
By CALVIN WOODWARD, Associated Press Writer Calvin Woodward, Associated Press Writer – 25 mins ago
"WASHINGTON – 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..."
Read the rest: http://news.yahoo.com/s/ap/20091025/ap_on_go_co/us_fact_check_health_insurance
DP: Those of us on the right have knows for most of this year that the assault on the health insurance industry is driven by the "enemies list" mentality fueled by propaganda and emotional appeals to supposed profiteering ala the trite argument "they make their money by denying coverage." Now we have the facts from MSN and they don't support the narrative of the rich insurance companies lining their pockets on the blood of the poor.
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