Tag Archives: Insurance

Health Care CEO Misleads Using Numbers

Many opponents of health care reform are throwing numbers around, making it sound like the health care industry is barely profitable. They claim a 2-3% profit margin. It’s a half-truth –that 2-3% is, in fact, the percentage of total revenue, which is different from net return on investment. For example, CNN Business lists fortune 500 industries by profit margin of total revenue.

If I make $2 for every $100 I collect in revenue that’s 2%. But if I make $2 million for every $100 million I collect that also 2%.  If my operating costs are 20% of my gross profit (the insurance company average is about 17%), then in the former example my net profit is $1.60, a 400% return on my $0.40 investment. In the latter example it would be $1.6 million, also a 400% return. In both I keep 80% of the gross. In other words, the health care industry’s revenue is ginormous, and its operating costs are low. There’s tons of wiggle room for profit even with having to pay out medical claims.

No one would stay in any business with a 2-3% net return on investment when CD bank rates are 2.85% for a 5 year certificate. With those numbers a business might as well invest its money and do nothing. The real numbers show that the health care industry’s return on share holder equity is 16%. Not a bad return at all. But if you accept the profit margin lie, then the health care companies must be operating at a major loss, which we know isn’t true.

Advertisements

Leave a comment

Filed under Politics

Flu Vaccination – Free Medical Advice On The Street

I think this is the type of socialized medicine the GOP will accept wholeheartedly, because it’s absolutely free, with no cost to the taxpayer. What better place is there to gain solid medical advice than from the street. Forget those egg-head doctors and their years of training and their access to the greatest data bases of knowledge in the world. I want the dumbo brunette on the corner who passes out pamphlets, and her gibbering throng of morons who can’t help but play to a camera, to determine whether or not I get the flu shot. Would you ask any of these halfwits to do your taxes? I think not.

 

Leave a comment

Filed under Culture Warfare, Science

Obama, A Conservative’s Nightmare

In 2000 I feared a George Bush presidency, but I never seriously thought Bush was the devil’s disciple or that he would bring on the apocalypse. I just thought Bush would bring terrible policies. And he did. He dirtied America with his rotten conservative values, reckless decision making, and heavy handed foreign policy. But his slimy fingerprints on our beautiful country can be wiped away, and Bush can be relegated to the mistakes pile.

Eight years later and conservative pundits are screaming that America as we know it is going to be destroyed by an Obama presidency. For example, Michael Medved, movie critic, radio hack, and cheerleader for intelligent design, is crying that changes brought about by a President Obama would be “permanent and devastating”.

But conservatives need to face the fact that Barack Obama has promised profound systemic changes that will be irreversible—absolutely permanent alterations of our economy and government where there is no chance at all that Republican office-holders of the future could in any way repair the damage.

Medved uses the prospect of higher taxes to spread a little fear amongst conservatives. But he makes a serious mistake in his thinking.

Yes, it’s true that some changes by liberal presidents can be erased by future conservatives – for instance, George W. Bush cut the top marginal tax rate to 35%, after it had risen to 39.6% under Clinton (it’s sure to go back up to the Clinton rate – or higher – under Obama).

Conservatives often cite tax rates the same way twelve-year-old boys recite baseball stats. The problem is that a tax rate, a percentage, does not equal the actual amount of tax collected. Corporations, and the ultra rich, have perfected the art of moving profits and assets offshore. They also know how to reap the benefits of corporate welfare. So, wealthy conservatives exaggerate their tax burden. What do they want, to have a lower tax rate than the middle class?

Medved goes on to list what Obama will bring to America: “Homosexual marriage”, “subsidized health insurance”, “The National Endowment for the Arts”, liberal immigration, etc. Medved ends with:

The conservative movement, and the survival of a viable small-government faction in American politics, depends upon a McCain victory in November. A triumph for Barack Obama, combined with Democratic gains in both House and Senate, could easily usher in a dark new era with decades of corrupt, welfare-state, bureaucratic leftist rule.

This nightmare of Medved’s is purely of his own twisted imagination. A liberal agenda might indeed be enacted, but will it force America into “a dark new era”? The answer is no. I don’t even think Medved believes this. Conservative pundits use fear mongering as a tool to whip the masses into an angry froth. And what’s more effective than screaming “liberal”, “socialist”, “terrorist”, and “anti-American”. Medved isn’t a commentator, he’s a professional propagandist. If Obama does damage America, it will endure. American is not as fragile as the wacko conservatives would like you to think. If Obama scrares you, it’s because you’re too impressionable.

Leave a comment

Filed under Culture Warfare, Politics