True Health Care Reform-Part 3: The Role of Insurers  Insurance
companies are the demonized actor in health care. A realistic
look at the situation reveals that they have to invariably work
through a maze of government regulations and mandates that
hamper their ability to service policy holders. There is no
shortage of stories of insurance company abuses and policy
holder sob stories before Congress. Looked at in isolation, the
story is troubling. From 1998-2008, insurance company profits
increased 175% while prescription drugs are 50% higher here than
in other countries and hospital stays are twice as expensive.
Pharmaceutical company profit margins are 19.3%- way above the
Dow Jones 500 average and much higher than the more demonized
oil companies. Insurance companies exist to provide a service-
write policies, collect premiums and disburse benefits while
making a profit. Once publicly traded, the management team of
the company has a fiduciary duty to maximize profits for
shareholders. It is called capitali