America is the only industrialized country in the world that implements for-profit health care insurance industries. For those who are not aware, Medicare and Medicaid are not for-profit entities; they are government run health care systems.
American for-profit health care insurance companies have a net profit margin of around 2% – 3%, which may not seem like much. However that’s their profit margin after paying their CEOs and other executives' salaries and bonuses of tens of millions (and sometimes hundreds of millions) of dollars and the companies still have profits of hundreds of millions of dollars annually.
Of course these salaries are one of the many reasons why private health insurance companies have 25% to 30% total administrative costs compared to Medicare which only has about 3% in total administrative costs.
In addition we cannot overlook the fact that private insurance companies make millions more in profits by finding reasons not to pay the medical expenses of people who faithfully paid their insurance premiums.
Currently the public option is being discussed as an alternative to high insurance premiums. Tea Party activists have loudly opposed such an option and we hear from supporters when they tell their stories of pain due to lack of available health care for financial reasons.
Since this is such an important topic, it’s in your best interest to contact your representative. A hard copy letter is the most effective tool, and it helps our postal service stay in business!
Our government hears from lobbyist every day, but they also need to hear from you.
Click here to find where to send your letter.
Click here for help with proper letter format that may help strengthen your message.
Click here to view videos about health care reform.