Obscene Health Insurance Company Profits for 2011
Health insurance company profits may be in the headlines again over the next few weeks. With the SCOTUS deciding the fate of Obamacare this week and the heating up of the election, you can be sure to hear all about the obscene health insurance company profits. However, the truth is often much different than what the politicians and media like to admit when demonizing health insurance company profits.
For 2011, the top five insurance companies reported an average profit margin of 4.82%. Insurance company profits ranged from 2.77% for Express Scripts to 6.03% for Cigna. For comparison purposes, Apple rakes in 27.13%, Google has a 27.09% profit margin, and Starbucks has 10.56% left over.
The 2011 profit margins for the top 5 health insurance companies are (ordered by market cap):
- United Health Group: 5.05%
- Express Scripts: 2.77%
- Wellpoint: 4.36%
- Aetna: 5.88%
- Cigna: 6.03%
The average profit for the top five health insurance companies was up 0.02% from the previous year. However, for some reason, you have not seen any headlines of “Average Top Five Insurance Companies Rake in Almost 0.02% More This Year”.
The best way to combat the half truths and lies about health insurance company profits is to know the truth. The next time year hear about huge health insurance company profits, you will know that somebody is trying to fool you.