Originally Posted by BigRedChief
My opinion is that 20% of administration overhead is plenty of margin for a health insurance business. How hard is that to understand?
Just because I chose to not get into stupid ass arguments with people who are not going to change their mind doesn't = "getting my ass handed to me".
I am making a choice to who and how often I will respond to in this forum.
So if you want to make the choice to label all who disagree with you as liberal scum, thats your choice.
Profits = Revenues - Expenses
Expenses= 80 + whatever it costs them to put the lights on, salaries, HR, etc etc etc.
How much profit does that leave to hire new people, expand your operations etc when your operating costs (overhead + selling, general, and administrative) is somewhere in the 14-18% of sales range? In this case sales =100. That's right... anywhere from a 2%-6% profit margin. Not 20% as you keep beating your chest about. This has nothing to do with liberal vs. conservatives. It is purely dollars and sense. Smaller health insurance companies will find it more than difficult to operate in this environment. The big guys can swing it because they offset their losses in individual premium sales of policies by selling group policies to large companies in which they don't have to provide as much back end service, a cost that smaller companies have to absorb. You don't seem to get that or your vision is blurred by your Barrycoloredkoolaid glassses.
You smell what I am stepping it yet?