Health Insurance Industry Profits Examined

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The characterization of the health insurance industry as high-profit is "a little mystifying" and "rather silly" given that their profit margins are thin compared to other industries, according to analysts interviewed by ABC News.

"Insurance companies are not money trees. They (go) out into the market and buy health care services and resell those services at some markup at health care consumers. I would argue that markup is not that much," one analyst said. ABC reports, "the profit margins the health insurance companies report - often below 5 percent - pace some industries and lag behind many others" (Gomstyn, 11/10).

This information was reprinted from kaiserhealthnews.org with kind permission from the Henry J. Kaiser Family Foundation. You can view the entire Kaiser Daily Health Policy Report, search the archives and sign up for email delivery at kaiserhealthnews.org.

© Henry J. Kaiser Family Foundation. All rights reserved.

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