How $1 in health insurance gets spent – The Washington Post

Via Blue Shield of California, a breakdown of how each dollar it gets from health insurance subscribers gets spent:

The point? Most of the dollar goes to medical care, not insurer profits. That’s particularly true for Blue Shield of California, which pledged last year to cap its profits at 2 percent. But it’s broadly true across the health-insurance industry. According to Fortune’s 2009 ranking of industry profits, the health-insurance industry’s takes 2.2 percent of its revenues as profits. The pharmaceutical industry, by contrast, takes 19.4 percent.

via How $1 in health insurance gets spent – The Washington Post.

This entry was posted in Teaching cases. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s