What do you imagine is the profit margin of a health insurance company?
According to this report by the national association of state regulators, the profit margin of the health insurance industry in 2023 was 3%, or $25 billion.
Compared to over $1T of premiums, and over $4T of total healthcare spending in the US, that doesn't seem "staggering" to me.
Profit margin is the wrong metric in this debate. The person you are replying to is saying that the insurance companies as a whole is a waste, including all the salaries paid to their employees.
Yes. I owned a medical practice. These numbers affected how much money we took home every month, and I know them with far more personal interest than almost anyone else weighing in here.
If I can reliably sell people $1 bills for $1.03, in extremely large quantities, I'll be very, very happy.
Low margin, high volume is very different than low margin, low volume. The Walton family is very pleased with their tiny margins and the wealth it has delivered them.
What do you imagine is the profit margin of a health insurance company?
According to this report by the national association of state regulators, the profit margin of the health insurance industry in 2023 was 3%, or $25 billion.
Compared to over $1T of premiums, and over $4T of total healthcare spending in the US, that doesn't seem "staggering" to me.
https://content.naic.org/sites/default/files/topics-industry...