Just The Facts
October 27, 20092:19 pm
They’ve been called “immoral,” “skyrocketing” and “obscene,” but the fact is that health insurer profits don’t match the rhetoric coming from proponents of a government health plan option.
Unfortunately, health reform debate is degenerating into us-versus-them rhetorical warfare. Those who want a larger role for the federal government in the health insurance markets are trying to rile populist anger by talking about the insurance companies making outrageous profits at the expense of American consumers.
The numbers, though, don’t back up the accusations. According to a report this week in the Associated Press, health insurance profit margins last year were 2.2 percent, which placed the industry 35th in profitability among 53 industries on the Fortune 500 list. The AP pointed out that products like Tupperware, Clorox bleach and Coors beer made stronger profits.
Right now, polls show that the American people are largely skeptical over whether health reform will have a positive impact on their lives. Perhaps, the public is crying out for an illuminating discussion on the topic, rather than this tired old campaign-style demonizing of health industry sectors.
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