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Thread: Insurers Profit From Health Law They Fought

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    Insurers Profit From Health Law They Fought

    Insurance companies spent millions of dollars trying to defeat the U.S. health-care overhaul, saying it would raise costs and disrupt coverage. Instead, profit margins at the companies widened to levels not seen since before the recession, a Bloomberg Government study shows.

    Insurers led by WellPoint Inc. (WLP), the biggest by membership, recorded their highest combined quarterly net income of the past decade after the law was signed in 2010, said Peter Gosselin, the study author and senior health-care analyst for Bloomberg Government. The Standard & Poor’s 500 Managed Health-Care Index rose 36 percent in the period, four times more than the S&P 500.
    “The industry that was the loudest, most persistent critic of this law, the industry whose analysts and executives predicted it would suffer immensely because of the law, has thrived,” Gosselin said. “There is a shift to government work under way that is going to represent a fundamental change in their business model.”
    Health insurers contributed $86.2 million to the U.S. Chamber of Commerce to oppose the law after Obama administration officials criticized the plans for enriching themselves by raising customer premiums. America’s Health Insurance Plans, the industry’s Washington lobbyist, still says on its website the law will raise costs and cause consumers to lose coverage.

    Insurers Profit From Health Law They Fought - Bloomberg


    Seems like these guys might have wasted 86 million bucks.

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    Re: Insurers Profit From Health Law They Fought

    They succeeded in killing the public option, so for them it was money well spent.

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    Re: Insurers Profit From Health Law They Fought

    The insurers won - they fought a public option because that would have forced them to bring down costs by streamlining overhead and lowering profits to stay competitive. By defeating the public option while allowing a mandate that everyone have healthcare, the health insurers assured they would continue to be able to bleed money slated to pay for healthcare to pad their bottom lines.

    We are the only first world country without a public option to cover basic healthcare. A few countries have moved toward the US model (driven by private insurers meddling in their politics) for basic care and are seeing what America already has -- the most costly healthcare in the world with lackluster healthcare outcomes.

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    Re: Insurers Profit From Health Law They Fought

    Quote Originally Posted by AdamT View Post
    They succeeded in killing the public option, so for them it was money well spent.
    I think they just put it off. It is inevitable that there will be a public option.
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    The economy will improve under this bill. If a few people die, it will be for the betterament of this country.

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    Re: Insurers Profit From Health Law They Fought

    Quote Originally Posted by winston53660 View Post
    Insurance companies spent millions of dollars trying to defeat the U.S. health-care overhaul, saying it would raise costs and disrupt coverage. Instead, profit margins at the companies widened to levels not seen since before the recession, a Bloomberg Government study shows.

    Insurers led by WellPoint Inc. (WLP), the biggest by membership, recorded their highest combined quarterly net income of the past decade after the law was signed in 2010, said Peter Gosselin, the study author and senior health-care analyst for Bloomberg Government. The Standard & Poor’s 500 Managed Health-Care Index rose 36 percent in the period, four times more than the S&P 500.
    “The industry that was the loudest, most persistent critic of this law, the industry whose analysts and executives predicted it would suffer immensely because of the law, has thrived,” Gosselin said. “There is a shift to government work under way that is going to represent a fundamental change in their business model.”
    Health insurers contributed $86.2 million to the U.S. Chamber of Commerce to oppose the law after Obama administration officials criticized the plans for enriching themselves by raising customer premiums. America’s Health Insurance Plans, the industry’s Washington lobbyist, still says on its website the law will raise costs and cause consumers to lose coverage.

    Insurers Profit From Health Law They Fought - Bloomberg


    Seems like these guys might have wasted 86 million bucks.
    They are creating their own trust fund to mitigate their loses in the future.

    On a serious note, their profit margin went from 6.8% to 8.2%. Not a big jump.
    Last edited by Samhain; 01-05-12 at 01:54 PM.

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    Re: Insurers Profit From Health Law They Fought

    Quote Originally Posted by Samhain View Post
    They are creating their own trust fund to mitigate their loses in the future.

    On a serious note, their profit margin went from 6.8% to 8.2%. Not a big jump.
    That is a HUGE jump in dollar terms.

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    Re: Insurers Profit From Health Law They Fought

    considering how much they lobbied to kill the public option, the article should have been titled "Insurers profit from health law they bought."

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    Re: Insurers Profit From Health Law They Fought

    Quote Originally Posted by AdamT View Post
    That is a HUGE jump in dollar terms.

    At their present net income after taxes, a 1% increase would be about 10 million. Is that "HUGE"?

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    Re: Insurers Profit From Health Law They Fought

    Quote Originally Posted by Helix View Post
    considering how much they lobbied to kill the public option, the article should have been titled "Insurers profit from health law they bought."
    Lobbying money is generally the best investment a company can make in our broken system. Studies suggest that corporations typically receive a 600% to 2000% return on their lobbying dollars.

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    Re: Insurers Profit From Health Law They Fought

    Quote Originally Posted by winston53660 View Post
    Insurance companies spent millions of dollars trying to defeat the U.S. health-care overhaul, saying it would raise costs and disrupt coverage. Instead, profit margins at the companies widened to levels not seen since before the recession, a Bloomberg Government study shows.

    Insurers led by WellPoint Inc. (WLP), the biggest by membership, recorded their highest combined quarterly net income of the past decade after the law was signed in 2010, said Peter Gosselin, the study author and senior health-care analyst for Bloomberg Government. The Standard & Poor’s 500 Managed Health-Care Index rose 36 percent in the period, four times more than the S&P 500.
    “The industry that was the loudest, most persistent critic of this law, the industry whose analysts and executives predicted it would suffer immensely because of the law, has thrived,” Gosselin said. “There is a shift to government work under way that is going to represent a fundamental change in their business model.”
    Health insurers contributed $86.2 million to the U.S. Chamber of Commerce to oppose the law after Obama administration officials criticized the plans for enriching themselves by raising customer premiums. America’s Health Insurance Plans, the industry’s Washington lobbyist, still says on its website the law will raise costs and cause consumers to lose coverage.

    Insurers Profit From Health Law They Fought - Bloomberg


    Seems like these guys might have wasted 86 million bucks.
    Of course they're going to make tons of money. Without a public option, and the "healthcare" law being that you have to buy healthcare, all money goes to those insurance agencies. Hand out to the insurance companies; I've said so for some time.
    You know the time is right to take control, we gotta take offense against the status quo

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