Monday, September 28, 2009
Brian Orelli :: Townhall.com Columnist
Health-Care Reform
by Brian Orelli
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Except perhaps for the merits of a bailoutlast year, no other topic in recent memory has led to such a polarized view from Fools as the health-care debate. The sheer volume of comments in articles -- here, here, and here-- tell the story.

Some of you had suggestions of your own about how to solve the high price of health care, but mostly the debate comes down to how much Fools want the government involved with health care, and whether it's OK for companies to make a buck off sick people. Today, I'd like to take a look at the latter.

Hang with me, Fools -- this could get ugly.

You said it
Reader CommonPaine doesn't have a problem with doctors -- just health insurers, whom the reader feels don't contribute anything to the party:

While I have no problem with care providers earning a living by giving care, I see no reason why a company that gets rich by denying payment for care has any right to exist. You can idolize these vultures if you wish. They have proven themselves to be ethically corrupt and morally bankrupt.

DorianSnow agrees:

It is patently immoral to make a profit off of the misfortune and illness of people. Making a living and paying expenses is fine. But as soon as the entity providing the care is beholden to shareholders, care is cut at the expense of the patient to put more money in the pockets of investors.

On the other side of the table, GaryCCB, wonders what all the hubbub is about?

Can anyone show me a health insurer that carries a profit percentage of more than 6%? From what I've observed, none are making reasonable profits. I'm no champion of the health insurance business but I'm finding all the large insurers are carrying after-tax bottom lines of 4, 5 or 6%. When I started businesses I wouldn't have even considered an after-tax profit of less than 15%.

Finally, minowe just doesn't get it, wondering, "I'm amazed to read so many comments in an INVESTMENT newsletter 'Comments' section that seem to believe that PROFIT is evil."

Here's my take
The problem with complaining about profits is that profits are what allow all of us to live longer. Just like you shouldn't expect Apple (Nasdaq: AAPL) to develop new toys, or ConocoPhillips (NYSE: COP) to find new places to drill for oil, if there's no profit to be had, there's no reason to expect Pfizer (NYSE: PFE) or Merck (NYSE: MRK) to develop new drugs if there isn't profit involved. Continued...

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About The Author

Brian Orelli is a Motley Fool contributor.

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