Friday, June 19. 2009
Have you ever wondered where your health insurance premium goes? How much do you think is lining the pockets of the big bad health insurance company?
You may be surprised to know that only .03 cents of every $1.00 is profit for the insurance company.
Is this too much? Some think so. But if you own a small business or even a large one what do you make in profit? 3%? probably not or you would be out of business in most cases. One of the reasons we have health insurance in this country is because our system is built on free enterprise which allows a business to make a profit as long and as much as the market will bare.
Another fact that most people do not know is health insurance is already heavily regulated by the government. It is regulated so much that in most states when a health insurance carrier wants to raise rates they must go to the state, show how much was collected in premiums, and how much was paid out in claims. If the amount of profit exceeds government regulations the insurance company cannot raise rates.
Who will be watching the government and what they charge if/when it's their turn to provide health care?
To see a breakdown of where your health insurance premiums go click here: Health Insurance premium breakdown
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