You beat me to it. I’m a financial consultant in the insurance industry and UHC isn’t the problem. It’s the entire healthcare system.
The Affordable Care Act and the CMS enforces that health insurance companies must pay a Minimum Loss Ration of at least 80% on claims and direct claim expenses. Which means in an absolute best case scenario a health insurer can make a 20% ish profit margin when you include investment income.
The best performing insurance carriers in the country (different lines of business) operate with a 30-35% margin. However other rate making laws require rates to be adjusted or premiums rebated to policyholders if rates are determined to be unreasonable by the state DOI.
If you look here, obviously while the profit amount in dollars is a big number, the % of net income to premium dollars is single digits.
The average reddit user has been thinking that the insurance companies are running on 90% profit models.
They absolutely will not like this type of breakdown.
Numbers correct but percentages not clear. Need to be careful with that. Otherwise a great viz.
“They only make 4% profit! They are just a poor business trying to get by.” No, they are a huge corporation profiting from human suffering, misery, and death. Healthcare should not be a for-profit.
So if it was a non-profit it would save customers $6.3 billion a year? Interesting.
What is this style of graph called? And can I make it in Excel?
Where do salaries fall in this? Operating costs?
Uhhhh… If accurate then this is a significant change from what we all would’ve expected. Putting aside the absurd costs in general.
Are these actual medical costs? Or are these the patient’s originally billed costs prior to the doctor/insurance agreed upon cost?
Lol. legitimate disappointment at the people that don’t understand that 99% of what is in this picture is unnecessary, and that is where the problem lies. But you’re gonna get financial bros and health insurance apologists in here saying that “an approx. 6% net income is so sad, and woe upon that company for having such small margins”. Bullshit. get out of here and reevaluate your life.
The payouts wouldn’t be so high if the hospital chargemasters created in collusion with health insurance companies didn’t inflate the prices of medical care in America so gratuitously. If you have knowledge of the history of medical insurance and pricing in the United States, you’d know that this data isn’t actually that beautiful, or useful. It’s a photograph of a problem. The fact that insurance companies don’t often pay sticker price in the background, notwithstanding.
This data is more obfuscating than anything. It doesn’t show why the chart looks like this, and the story it tells to the layman is misleading.
Would be interesting to see share buy backs, c suite salaries/bonuses and “expenses” to subsidies or related parties.
This data is not beautiful; this is a carefully crafted story told to achieve a certain objective. Lets see the detail behind this thank you if you want this to qualify as ‘data is beautiful’
The real problem is how huge are medical costs in US.
Ambulance 8k$? Giving birth in an hospital 15k-25k $?? Wtf
Tax system needs to account for this. 18% FUCK ME DEAD! Why do they pay less tax than me? RISE UP
So if we eliminated them immediately then we’d see a $33,000,000,000 savings by directly paying the hospitals instead.
Of course insurance upmarks everything by 500% or more. Was charged $10,000 for a procedure until I told them I didn’t have insurance then all of a sudden it was only $2000.
So we’d save another ~$80,000,000,000 if we eliminated all insurance companies.
![[OC] Breaking down UnitedHealth Group’s Billions](https://www.europesays.com/wp-content/uploads/2024/12/m4vxcdw3ml6e1-1920x1024.png)
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Source: UnitedHealth Group investor relations: [https://www.unitedhealthgroup.com/content/dam/UHG/PDF/investors/2024/UNH_Q3-2024_Form-10-Q.pdf](https://www.unitedhealthgroup.com/content/dam/UHG/PDF/investors/2024/UNH_Q3-2024_Form-10-Q.pdf)
Tool: [SankeyArt](http://sankeyart.com) Sankey chart maker
I have a feeling Reddit won’t like this one…
isn’t medical costs whats extremely high in US?
You beat me to it. I’m a financial consultant in the insurance industry and UHC isn’t the problem. It’s the entire healthcare system.
The Affordable Care Act and the CMS enforces that health insurance companies must pay a Minimum Loss Ration of at least 80% on claims and direct claim expenses. Which means in an absolute best case scenario a health insurer can make a 20% ish profit margin when you include investment income.
The best performing insurance carriers in the country (different lines of business) operate with a 30-35% margin. However other rate making laws require rates to be adjusted or premiums rebated to policyholders if rates are determined to be unreasonable by the state DOI.
If you look here, obviously while the profit amount in dollars is a big number, the % of net income to premium dollars is single digits.
The average reddit user has been thinking that the insurance companies are running on 90% profit models.
They absolutely will not like this type of breakdown.
Numbers correct but percentages not clear. Need to be careful with that. Otherwise a great viz.
“They only make 4% profit! They are just a poor business trying to get by.” No, they are a huge corporation profiting from human suffering, misery, and death. Healthcare should not be a for-profit.
So if it was a non-profit it would save customers $6.3 billion a year? Interesting.
What is this style of graph called? And can I make it in Excel?
Where do salaries fall in this? Operating costs?
Uhhhh… If accurate then this is a significant change from what we all would’ve expected. Putting aside the absurd costs in general.
Are these actual medical costs? Or are these the patient’s originally billed costs prior to the doctor/insurance agreed upon cost?
Lol. legitimate disappointment at the people that don’t understand that 99% of what is in this picture is unnecessary, and that is where the problem lies. But you’re gonna get financial bros and health insurance apologists in here saying that “an approx. 6% net income is so sad, and woe upon that company for having such small margins”. Bullshit. get out of here and reevaluate your life.
The payouts wouldn’t be so high if the hospital chargemasters created in collusion with health insurance companies didn’t inflate the prices of medical care in America so gratuitously. If you have knowledge of the history of medical insurance and pricing in the United States, you’d know that this data isn’t actually that beautiful, or useful. It’s a photograph of a problem. The fact that insurance companies don’t often pay sticker price in the background, notwithstanding.
This data is more obfuscating than anything. It doesn’t show why the chart looks like this, and the story it tells to the layman is misleading.
Would be interesting to see share buy backs, c suite salaries/bonuses and “expenses” to subsidies or related parties.
This data is not beautiful; this is a carefully crafted story told to achieve a certain objective. Lets see the detail behind this thank you if you want this to qualify as ‘data is beautiful’
The real problem is how huge are medical costs in US.
Ambulance 8k$? Giving birth in an hospital 15k-25k $?? Wtf
Tax system needs to account for this. 18% FUCK ME DEAD! Why do they pay less tax than me? RISE UP
So if we eliminated them immediately then we’d see a $33,000,000,000 savings by directly paying the hospitals instead.
Of course insurance upmarks everything by 500% or more. Was charged $10,000 for a procedure until I told them I didn’t have insurance then all of a sudden it was only $2000.
So we’d save another ~$80,000,000,000 if we eliminated all insurance companies.
And people wonder why we don’t like them…
https://m.macrotrends.net/stocks/charts/UNH/unitedhealth-group/net-income the 12 month net income is 14.37 billion dollars.
Does massive CEO compensation come from “Operating costs” or “Net income”. Either way that’s a lot of money.
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