Breakdown of How Health Insurance Premiums Are Used
Do you wonder why health insurance premiums of your very high and continue to rise? May feel like the health insurance industry to take advantage of consumers through higher premium costs in all areas, but this is not necessarily true. There is an interesting article on the very collapse of the WashingtonPost.com shows exactly how much goes towards things like doctors and hospitals. You may be surprised to know that insurance companies take a very small profit when he said everything in his work.
According to the "how to get $ 1 in the consumer health insurance" by Sarah Kliff on WashingtonPost.com, and health insurance companies only take about 2% of its revenues and profits. Detail here as provided by Blue Shield of California:
Hospital costs - 40%Physicans - 28%Pharmaceutical coverage - 12%Other medical expenses - 5%Mohammed costs - 13%Income for the Blue Cross - 2%As you can see, most of your premium dollar goes towards medical care by a large margin. And vowed to Blue Cross in California last year to reduce earnings by 2% and can be seen this in many insurance companies across the country. Based on the latter arrangement of the 2009 Fortune ranking of the industry profits, on average, the health insurance industry takes 2.2% of revenue and profits. When you compare this to the pharmaceutical industry and the difference is stunning. They make a profit of about 19.4%. This is a good set up since the reform of the health care system plans to require significant work planned to spend at least 85 cents of every dollar on medical costs, which appears to Blue Cross of California is doing already.
According to the "how to get $ 1 in the consumer health insurance" by Sarah Kliff on WashingtonPost.com, and health insurance companies only take about 2% of its revenues and profits. Detail here as provided by Blue Shield of California:
Hospital costs - 40%Physicans - 28%Pharmaceutical coverage - 12%Other medical expenses - 5%Mohammed costs - 13%Income for the Blue Cross - 2%As you can see, most of your premium dollar goes towards medical care by a large margin. And vowed to Blue Cross in California last year to reduce earnings by 2% and can be seen this in many insurance companies across the country. Based on the latter arrangement of the 2009 Fortune ranking of the industry profits, on average, the health insurance industry takes 2.2% of revenue and profits. When you compare this to the pharmaceutical industry and the difference is stunning. They make a profit of about 19.4%. This is a good set up since the reform of the health care system plans to require significant work planned to spend at least 85 cents of every dollar on medical costs, which appears to Blue Cross of California is doing already.
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