Tuesday, July 21, 2009

Obama, UnitedHealth Group and windfall profits

President Obama is taking a more aggressive tone in his battle to get health care reform passed this year, criticizing the "windfall profits" health care firms and executives are earning.

Windfall profits. I can't help but be reminded how this term has been closely tied to "Big Oil."

Today, the HMO and health insurer UnitedHealth Group (UNH) reported 2Q net income of $859 million, or $0.73 per share, on revenues of $21.7 billion.

A 3.9% net profit margin hardly qualifies as a windfall profit, Mr. President.

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