"I happen to have the annual report from State Farm that came with the bill for my auto insurance premium. In 2008 they collected $31.6 billion in auto premiums and paid out $22.4 billion in claims. That $9.2 billion in overhead and profit amounted to a 41% markup."While you are at it, why don't you tell us how much overhead there was in your MSFT annual report, where you buy the software to run your computer. I assume you use some MSFT software?So? You forgot to mention the monitoring of fraud....you forgot to mention the actual sales of policies, and the cost in making the payments.Unlike the gov't which sends out hundreds of billions , mostly unverfied, for Medicare, and then claims it is so efficient, when most folks admit there is 20% fraud going on, the insurance companies spend a lot to actually inspect your vehicle when damaged, then pay to get it fixed. Yes, I'd bet there is a lot of overhead in the auto insurance business. First, collecting the money. Unlike Medicare, where they take it out of your paycheck or SS check or bank account, by force if necessary, the insurance companies don't have that power. Come on, intercst, tell us about the 60 trillion (that's 60 with 12 zeros after it) unfunded liabilities.IF SS was analyzed in reality, it would be a Ponzi scheme so big that Madoff would look like a dimple on the earth compared to the Medicare and SS Ponzi schemes in place right now. Everyone associated with them would be serving life in jail. ANd you want us to add another 100 trillion for 'universal health care' to the Ponzi scheme?t.
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