Healthcare Post Passage, Part I

So as you probably know, the US House of Non-Representatives voted by a margin of 219-212 in favor of taking over the healthcare of this country. I am perhaps most disappointed in the fact that by doing so they blatantly ignored what I and a vast majority of Americans wanted.

I want, then, to take a look at insurance. After all, this is the main reason the bill was passed- MILLIONS of Americans cannot get coverage. If you followed the debate from last year the number of uninsured dropped from 47 million to 32 million. How did that happen?

Did we change something? Did our system magically cover 15 million previously uninsured? I doubt it. More likely the reason is because the President knows the number is bogus all around. It has already been shown where the numbers come from and the real number is around 10-12 million.

Still, that is a lot of folks. An entire 4% of our population. It stands to reason why we should uproot our entire system. 96% of America is living large while these poor Four-Percenters are getting the shaft. Much better to be BROAD AND SWEEPING than FOCUSED AND TARGETED.

But I digress.

I want to discuss insurance as it has been displayed. First, the claim that the insurance companies are evil and greedy. They are out there raising rates at 40% just because they can; and at a time when America is really hurting.

Ok, so WHY did Anthem Blue Cross of California do that? Note that this was only for PRIVATE policies. No one under group (i.e. employer) plans was affected. President Obama even said it was unconscionable and chastised them for doing so. Health and Human Services Secretary (HHS) Kathleen Sebelius berate them because they raised rates after a whopping 2 BILLION dollar profit in 2009.

Wow. A profit of 2 BILLION! What was this company thinking? Taking a massive 2.2% profit while poor Americans are suffering. They are not like those wonderful guys over at McDonalds, who’s 10% profit margin is TOTALLY different. I would like to note that in the Balance Sheet of Anthem (their annual financial report) they sold a property for around 3 billion dollars. So that means (to the mathematically challenged) that Anthem actually LOST money.

Fire people or raise rates? As a business person, you have to do what is best for your business. I don’t claim to say that Anthem was right in the size of their rate increase. I am not privileged to their insider projections. But for once, just ONCE, can we quit demonizing everyone we disagree with and have a normal debate?

More tomorrow as we look at the Left comparing Healthcare mandates to driving insurance mandates.

The revolution is at hand. Will you be a leader or a follower?

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6 thoughts on “Healthcare Post Passage, Part I

  1. I’m not gonna lie. I don’t know what party you are for. Why are so many people against health care? Not to be a jerk, but your numbers and conclusions don’t really follow.
    “Wow. A profit of 2 BILLION! What was this company thinking? Taking a massive 2.2% profit while poor Americans are suffering. They are not like those wonderful guys over at McDonalds, who’s 10% profit margin is TOTALLY different.” If McDonald’s had a 10% profit margin I wouldn’t be writing this article. If you have a reliable source for this, let me know. I will invest immediately. And a 2 BILLION profit. Please give me the name of this company so long as it is not Madoff.

  2. Maybe I did not stress this enough–a $2 billion dollar PROFIT. This never happened. Maybe $2 billion dollars in sales. But profit. Maybe Wal-Mart could generate this profit.

  3. The average POST-TAX profit margin for the healthcare industry is 2.2%. (Somewhere I also heard ~3% as well)

    McDonalds’ GROSS profit margin was 44%, and their pre-tax profit margin was 23%. Their AVERAGE post-tax profit margin for the previous 5 years (last years is not out yet) was 15%.

    I get my numbers from Forbes.

    Any business trying to make it on 2% profit margin is an extremely risky business.

    And I fail to get how people think that because we don’t want Uncle Sam running the entire system and bankrupting us that we don’t want healthcare.

    4% of the population does not warrant a massive takeover. Medicare and Social Security are going broke. The income is less than the outlay. We cannot continue. This adds massive debt on top of massive debt.

    Why do so many people want to destroy the economy of our country?

  4. I have no problem with honest companys making a profit, at least they aren’t in a government line expecting a free hand out for not contributing to anything.
    What’s your problem with that bro??

  5. Me? Absolutely nothing. I was making a point. The insurance company gets railed over a 2% profit margin, getting called evil, etc.

    Yet McDonalds has a 15% (44% gross!) profit in one QUARTER and you hear nothing at all about it.

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