Obscene Health Insurance Company Profits for 2010
With Obamacare passed, the liberal media is mum this year regarding health insurance company profits. In the years leading up to the passage of Obamacare, the top health insurance companies profits were front page news. We have highlighted before that the health insurance company profit headlines about health insurance profits are often misguided.
For 2010, the top five insurance companies reported an average profit margin of 4.8%. Insurance company profits ranged from 2.67% for Express Scripts to 6.33% for Cigna. These hardly qualify as obscene profits, but the liberal media often uses profit of any amount as a dirty word.
The profit margins for the top 5 health insurance companies are (ordered by market cap):
- United Health Group: 4.92%
- Express Scripts: 2.67%
- Wellpoint: 4.92%
- Aetna: 5.16%
- Cigna: 6.33%
Part of the silence from the liberal media could be that the average profit margins for insurance companies down for 2010. In 2010, the average health insurance company profit margin was 4.8% versus 5.15% for 2009 for the 5 largest insurance companies. Hardly fodder for the anti-capitalism media.
Despite the lower health insurance company profits for this year, the five largest insurance companies paid over $6 billion in income taxes on just under $12 billion in net profits.
The annual reports of the insurance companies are just now being published, so it is inevitable that you will start seeing headlines over the next few weeks about the evil health insurance company profits. However, the truth found in the financial statements of the health insurance companies is often much less sensational than the outrages that the media tries to portray.