Health Insurance Forum

Health Insurance companies focus on profit

by admin on 07/08/09 at 2:55 pm

According to AHIP America’s Health Insurance plans they are dealing with the misconception that health insurance companies focus more on their profit rather than the needs of the patients. AHIP states that their members only make one cent per each dollar that is spent on health care. Insurers are measuring their profits against the total amount of health care spending. What that means is that is all the money the we spend for doctors visits, hospitalizations, drugs & other medical related issues. If insurance companies use this as a scale to measure the bottom line of course their profits look lower. The way economists calculate an insurance company’s profit is based off of the premiums that are collected verses what the company pays out in claims. What do you think? Do insurance companies focus more on profit rather than the patient’s needs?