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... |