The comical foundations of Obamacare

In the health insurance market, the highest profit is at Blue Cross, at a little over 3 percent. Compare that with the profit margins at any similar sized corporations in other markets.

Most other major carriers have margins between 2 percent and 3 percent. Clearly, margins are not the problem. 

Despite these absurdly low profit margins Uncle Sam is further decreasing carrier margins by dictating mandatory loss ratios and levying added taxes.

It’s funny: We often lump pharmaceutical companies with carriers, but pharmaceutical companies typically have double-digit margins. We can get the exact same drugs we use in the United States for 50 cents on the dollar in Canada and elsewhere.

The fact is, Americans pay at least twice per capita what people in other industrialized nations pay for health care. 

This is a 70-year-old, multi-faceted, capitalism-oriented problem and will take decades at best to change significantly.

Americans are just starting to learn that diet and exercise do matter.

Lastly, good brokers are a wealth of information like any other professionals. They educate and offer unbiased help for a minuscule percentage of the cost and a minuscule fraction of what we’re all paying for this vast new bureaucracy.

See also:

• Sebelius tries to blame GOP for coming Obamacare failures
• How Obamacare will destroy the health-care market
• Obamacare won’t affect most 2012 taxes, despite firm’s claim