Monday, October 26, 2009

My Way News - FACT CHECK: Health insurer profits not so fat

How badly are insurance companies ripping people off? My Way News - FACT CHECK: Health insurer profits not so fat

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.

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