Letters: Health Care
Robert Siegel and Melissa Block read from listeners' e-mails.
MELISSA BLOCK, Host:
Now, to your comments and we begin with a correction.
ROBERT SIEGEL, Host:
Well, some of you heard us say apparently, it was Congressman Bart Stupak, Democrat of Michigan.
BLOCK: Actually, it was not Mr. Stupak but rather Congressman Gary Ackerman, Democrat of New York.
SIEGEL: I asked Mr. Cordani if his company could absorb the additional costs of the new health care bill, if insurance company profits continue to rise.
DAVID CORDANI: Our health care business has had a profit margin of about two percent. And that's been consistent over the last five years. We've worked with a lot of disclosures with the government so it's a thin-margin business on an after tax basis.
BLOCK: Well, that statement prompted many of you to complain that we should have followed up with Mr. Cordani to explain that two percent margin. We did some research and learned that most economists give a range of two to six percent for insurance company profits, pointing out that much of the other revenue goes toward administration, CEO salaries and marketing.
SIEGEL: She writes: Perhaps limiting it is an area where the various insurers could recoup some of their costs rather than increasing premiums even further.
BLOCK: We always like hearing from you, whether as advice or complaint. Please write to us at npr.org, click Contact Us at the bottom of the page.
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