THERE'S MORE MONEY STOLEN FROM MEDICARE AND MEDICAID THAN PROFITS FOR PRIVATE HEALTH INSURERS

NO WONDER THE CHICAGO MACHINE WANTS TO EXPAND GOVERNMENT CONTROL OVER HEALTHCARE INSURANCE:

THERE'S MORE FRAUD IN MEDICARE AND MEDICAID THAN PROFITS IN PRIVATE HEALTH INSURERS:

• $60 BILLION A YEAR FROM MEDICARE ACCORDING TO 6OMINUTES

• (AND ABCNEWS)

• MEDICAID FRAUD COSTS ANOTHER $30 BILLION PER YEAR

USNEWS (2009):

Overall, the profit margin for health insurance companies was a modest 3.4 percent over the past year, according to data provided by MORNINGSTAR

.

That ranks 87th out of 215 industries and slightly above the median of 2.2 percent.

By this measure, the most profitable industry over the past year has been beverages, with a 25.9 percent profit margin.

Right behind that were healthcare real-estate trusts (firms that are basically the landlords for hospitals and healthcare facilities) and application-software (think Windows).

The worst performer was copper, with a profit margin of minus 56.6 percent.

The big money, in other words, isn't in the insurance industry.

FORTUNE:

Top industries: Most profitable

Industry Rank	Industry	2008 Profits as % of Revenues
1	Network and Other Communications Equipment	20.4
2	Internet Services and Retailing	19.4
3	Pharmaceuticals	19.3
4	Medical Products and Equipment	16.3
5	Railroads	12.6
6	Financial Data Services	11.7
7	Mining, Crude-Oil production	11.5
8	Securities	10.7
9	Oil and Gas Equipment, Services	10.2
10	Scientific, Photographic, and Control Equipment	9.9
11	Household and Personal Products	8.7
12	Utilities: Gas and Electric	8.7
13	Aerospace and Defense	7.6
14	Food Services	7.1
15	Industrial Machinery	6.9
16	Food Consumer Products	6.7
17	Electronics, Electrical Equipment	6.5
18	Commercial Banks	5.2
19	Telecommunications	5.1
20	Chemicals	5.0
21	Construction and Farm Machinery	5.0
22	Insurance: Life, Health (stock)	4.6
23	Information Technology Services	4.5
24	Computers, Office Equipment	4.3
25	Metals	3.9
26	Wholesalers: Diversified	3.5
27	Insurance: Property and Casualty (stock)	3.3
28	Specialty Retailers	3.2
29	General Merchandisers	3.2
30	Health Care: Pharmacy and Other Services	3.0
31	Packaging, Containers	3.0
32	Beverages	2.9
33	Engineering, Construction	2.7
34	Health Care: Medical Facilities	2.4
35	Health Care: Insurance and Managed Care	2.2

HOOVERS:

Using the 2002 Census Bureau Economic Census, Hoover's has generated an industry financial summary for the Accident & Health Insurance industry.

Indicator

Total

NAICS Codes

2

Establishments

4,764

Sales, receipts or shipments ($1,000)

$359,570,071

Annual Payroll ($1,000)

$23,078,845

Paid Employees

464,454

Full Accident & Health Insurance Industry Financials

THAT'S $360 BILLION IN SALES.

• FIGURING IT HIGH - AT 3% - THAT MEANS THEY MADE $10 BILLION.

• THAT'S 1/10TH OF WHAT WAS STOLEN FROM MEDICARE AND MEDICAID.

NOW, TELL ME AGAIN: WHERE IS THE GREED AND INCOMPETENCE AND THE WASTE!?!?

IN THE PRIVATE SECTOR!?!?

NOPE.

IN THE GOVERNMENT.

IF WE WANT REALLY TO IMPROVE HEALTHCARE IN THIS COUNTRY, THEN LET'S START BY ENDING THE FRAUD.

WE CAN APPLY SOME OF THAT MONEY TO HELP PEOPLE BUY THEIR OWN INSURANCE.