4 ms·
I highly recommend reading this short piece. Even though the profit margin is so small for Health Insurance Companies, “the better measurement is not profit, bu
by ireadzalot 17y ago
I highly recommend reading this short piece. Even though the profit margin is so small for Health Insurance Companies, “the better measurement is not profit, but return on invested capital (ROIC). ”
One more line from the article: “If I had a business that consisted of people giving me $100 bills and me paying them back $96, it would be silly to describe that as a very low-profit industry.”
Source: The Economist
Link to Article: http://www.economist.com/blogs/democracyinamerica/2010/03/health_care_reform http://www.economist.com/blogs/democracyinamerica/2010/03/he...
- tullius 17y agoProfit margin is the important metric to look at in the context of moving to a socialized system. The stats in the linked article say that even if a public entity could run as efficiently as a private insurer there is only 3.7% surplus value to capture.
- rwl 17y agoYou are assuming that a public entity couldn't run more efficiently than a system of private ones, which is exactly the point -- or one of the points -- at issue.