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Kill “Big Burger” Save “Big Insurance”

By: weeklybito (Diary)  |  March 24th, 2010 at 07:25 AM  | 

RESIZE: AAA

United Health – the largest health insurer in the country has profit margins of 4.3%.
McDonald’s – the largest fast food chain in the country has profit margins of 20.03%.
Based on latest filings.

Assuming a causal relationship – that many of McDonald’s customers end up relying on healthcare to bail them out of their bad dietary habits – weekly/bito suggests that the White House now target “big burger” to help lower healthcare costs – requiring free medical care with any value meal.

It is not likely United will be able to remain profitable with the newest mandate from the Democrats in Congress and the White House.
McDonald’s is expected to do just fine.

COMMENTS

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  • Aaron G

    I have no doubt that if we don’t get rid of these clowns, a “fast food” tax will be coming down the pike.

    • weeklybito

      Kim Brandt – Medicare’s anti fraud chief in 2009 estimated medicare fraud at $80 Billion each year.

      Andrew Biggs – with American Enterprise Institute estimates the Health Care Insurance margin at 3% – so United is an over achiever – and the total industry profit at $13 Billion. A quote from that report follows;

      “Democrats point out that insurers’ profits approached $13 billion last year. “I mean, they are making so much money it is just ridiculous,” said Sen. Jay Rockefeller (D., W. Va.). ”

      So if we eliminated Medicare Fraud Waste and Abuse – we are in much better shape than if we confiscated 100% of the health insurance industries profits.

      As CEO of the United States – Obama should focus on getting his house in order – not on private enterprise.

      One more point – High Volume/Low Margin is exactly what Billions and Billions served on the sign outside of Mcdonalds means – and their margins are nearly 7 times the health insurance industry.

      The math does not match up for Obama in any way shape or form..

      Two attributions – Jonah Goldberg has a column that pointed me to Andrew Biggs at AEI.
      The Medicare fraud number comes from a Marshall Allan story in the Las Vegas Sun – which highlights why Doctors commit fraud – simply they can – it compensates for forced under payment – and the client has no reason to question anything – since its all free no matter what the doctor is paid.

      We should expect fraud to skyrocket.

  • acat

    in part by being willing to make a lower profit margin and to make it up in volume…

    I’ve had doctors tell me they won’t accept United Health, by the way. Apparently, some of their cost-cutting causes problems for the actual providers….

    The example still stands, though. I’d be interested in seeing how Aetna or the Blue Cross conglomerate compares.

    Mew

    • weeklybito

      weekly/bito