Sunday, October 25, 2009

The myth about the high profit margin of the health insurance companies

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As the table above of Profit Margins by Industry shows (data here for the most recent quarter), the industry “Health Care Plans” ranks #86 by profit margin (profits/revenue) at 3.3%. Measured by profit margin, there are 85 industries more profitable than Health Care Plans (included here are healthcare plan providers as Cigna, Aetna, WellPoint, HealthSpring, etc.).

It is more profitable to brew beer than to provide health care.

Actually to operate a brewery is the most profitable business ever 25% profit margin!!! Dang!