Health Ins. Co’s Not Problem – Healthcare Facilities & Big Pharma Are
By Audrey Howard on March 10, 2010, 12:34 pmThe White House administration has been recently attacking the big health insurance companies citing them as the problem with affordable health insurance for Americans. This seems to be a diversionary tactic by Obama to quickly pull the wool over America’s eyes while they pass the unfavorable healthcare bill through the House.
Healthcare Facilities Profit Margins
When browsing through Yahoo Finance you will find that Health Care Plans ranks 74th in profits margins as an industry. You will also find, for example, big health insurance companies like: Humana (NYSE: HUM), Aetna (NYSE: AET), Cigna (NYSE:CI) and Molina Healthcare (NYSE:MOH) as having profit margins ranging from 1.9% to 7.12%. Additionally, if you look closely at the REIT – Healthcare Facilities sector you will find that they are reaping profits margins of 25.2% as an industry average.
Here are some of the top profit margin takers: National Healthcare Investors (NYSE:NHI) – 99.77%, Universal Health Realty Income (NYSE:UHT) – 52.6%, Omega Healthcare Investors (NYSE:OHI) – 32.89% and Nationwide Health Properties (NYSE:NHP). The healthcare facilities are one to the two biggest industries gouging the American public.
Big Pharma Drug Manufactures
In addition to the Healthcare facilities the major drug companies are reaping in huge profit margins. The major drug companies are enjoying a nice fat profit margin of 22.2% and are the third ranked profit margin leader. These are companies like: China Aoxing Pharmaceutical – 339.38%, Bristol Meyers Squibb (NYSE:BMI) – 159.45%, Merck & Co. – (NYSE:MRK) – 64.36% and China Pharma Holdings – (NYSE:CPHI) – 46.15%. So while the Obama White House and congress continue their merry trek to make America think that they are beating up these big health insurance companies, they are doing nothing more than to sneak a country and economy killing healthcare bill past without anyone knowing. It goes without saying anything about the incredible amount of fraud and much needed tort reform.
Related posts:
- REIT – Healthcare Facilities Rank No. 2 In Profit Margins At 25.2%
- Healthcare Concern: Drug Mfgrs Rank No. 3 In Profit Margins At 22.2%
- Healthcare Bill Does Very Little To Hinder Health Insurance Companies
- Health Insurance: Obamacare May Affect Wall Street Insurance Stocks
- Health Care Costs Going Up – But So Are Hospitals Profits
You make a great point Audrey. As a surgeon in private practice I am amazed at how little is reported about what is really wrong with health care and where the money is really going. A couple of other businesses that are thriving on our health care crisis are retail pharmacies (eg Walgreens, Rite-Aid – have you seen the mark-ups if insurance isn’t paying?) and medical device/supply companies. We pay $40-60 for a little piece of foam to stop bleeding that must have an incredible mark-up over manufacturing cost even accounting for R&D costs. How about an honest pie-chart showing where the money really goes. Insurance companies are not the biggest problem we have – just another middleman skimming what I think is probably a fair profit.
Health insurance companies do NOTHING to heal the sick. They just shuffle papers and money. Don’t think profit margins – think overhead. We could reduce our health care costs by replacing them with Medicare for all, which would have much lower overhead. Unfortunately, they are too rich and influential to let that happen.
Wellpoint appointed Sen. Evan Bayh’s wife to its board (after his election, despite her lack of experience) and has paid her over $2M since. No surprise he opposes a public option. Their VP of Public Affairs, Liz Fowler, became senior aide to Sen. Max Baucus and literally wrote the senate bill — without a public option. They’ve proven they can’t be trusted. They’re a cancer on the body politic and need to be excised.