Petrified Truth

Happy Halloween

Obscene profits? Not so much

AP fact check: Health insurer profits not so fat.

In the health care debate, Democrats and their allies have gone after insurance companies as rapacious profiteers making "immoral" and "obscene" returns while "the bodies pile up."

Ledgers tell a different reality. Health insurance profit margins typically run about 6 percent, give or take a point or two. That's anemic compared with other forms of insurance and a broad array of industries, even some beleaguered ones.

Profits barely exceeded 2 percent of revenues in the latest annual measure. This partly explains why the credit ratings of some of the largest insurers were downgraded to negative from stable heading into this year, as investors were warned of a stagnant if not shrinking market for private plans.

Darn those pesky facts.

Creating new problems

More reality: Obama's Doctor Shortage.

By drastically increasing demand while doing little to increase primary care physician supply, ObamaCare will turn health care into a consumer nightmare: longer wait times, shorter visits, higher prices, and decreased customer satisfaction. The U.S. will have to rely increasingly on nurse practitioners and physician assistants to meet patient demand. According to the WHO, the nurse-to-physician ratio in Canada and the U.K. are 5.3 and 5.6, respectively, compared to 3.6 in the U.S. And as fewer bright young people pursue medicine due to the profession's general malaise and oppressive bureaucratic regulations, we're likely to see an even greater physician shortage---not just in primary care, but in specialty care as well.

A September survey by Investors Business Daily found that 45% of doctors would consider quitting if Congress passes its "comprehensive" health-care overhaul, largely because of the increased bureaucracy and liabilities and lower reimbursements. The U.S. is facing a John Galt-like protest from doctors. The Obama administration may soon be wondering: who is John Galt?

Tough guy?

Mark Steyn: Who are the real “Untouchables”here?

So the troika of Dunn, Emanuel, and Axelrod were dispatched to the Sunday talk shows to lay down the law. We all know the lines from The Untouchables — “the Chicago way,” don’t bring a knife to a gun fight — and, given the “pay czar”’s instant contract-gutting of executive compensation and the demonization of the health insurers and much else, it’s easy to look on the 44th president as an old-style Cook County operator: You wanna do business in this town, you gotta do it through me. You can take the community organizer out of Chicago, but you can’t take the Chicago out of the community organizer.

The trouble is it isn’t tough, not where toughness counts. Who are the real “Untouchables” here? In Moscow, it’s Putin and his gang, contemptuously mocking U.S. officials even when (as with Secretary Clinton) they’re still on Russian soil. In Tehran, it’s Ahmadinejad and the mullahs openly nuclearizing as ever feebler warnings and woozier deadlines from the Great Powers come and go.

Even Obama’s Nobel Peace Prize is an exquisite act of condescension from the Norwegians, a dog biscuit and a pat on the head to the American hyperpower for agreeing to spay itself into a hyperpoodle.