Insurance Companies' Profits Soar as Americans Suffer

As the debate over healthcare reform intensifies, a shocking trend has emerged: insurance companies have seen their profits skyrocket while average Americans struggle to make ends meet. In the seven-year period between 2000 and 2007, the profits of insurance companies rose by a staggering 428 percent, from approximately $2.4 billion to $12.9 billion. Meanwhile, the incomes of average Americans remained flat. The rise of insurance company profits can be attributed to two primary factors: charging higher premiums and limiting coverage for those who need it most.

Key Takeaways:

• Insurance company profits rose by 428 percent between 2000 and 2007, reaching $12.9 billion.
• The incomes of average Americans remained flat during the same period.
• Insurance companies maximize profits by charging higher premiums and limiting coverage for those with pre-existing conditions.
• Rescissions are used to deny coverage to those who need it most, often due to technicalities or maneuvering by the insurance companies.
• The CEO of the top insurance company received $24 million in compensation in a given year.
• A constituent with leukemia who was scheduled for a bone marrow transplant had his coverage dropped by his insurance company due to a reduction in work hours.
• Insurance companies often use loopholes to deny coverage to those who need it most.
• The current system prioritizes insurance company profits over the needs of American citizens.

Statistics:

• The profits of insurance companies rose by 428 percent between 2000 and 2007.
• The incomes of average Americans remained flat during the same period.
• The CEO of the top insurance company received $24 million in compensation in a given year.
• 428% increase in insurance company profits between 2000 and 2007
• $2.4 billion (2000) to $12.9 billion (2007) - sum of insurance company profits during the period

Sources:

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• Federal News Service, Inc. (2009). Transcript of [speakers' names], FNS.