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How Do Health Insurance Companies Make Money?

RobSchwab.comHow Do Health Insurance Companies Make Money?

RobSchwab.comHow Do Health Insurance Companies Make Money?

2 Primary Revenue StreamsInvestment of premiumsCollection of premiums

RobSchwab.comHow Do Health Insurance Companies Make Money?

Collection Of Premiums

PremiumPaid by consumers

Cost of insurance policyTypically paid monthly

Average yearly cost per person: $2,820

RobSchwab.comHow Do Health Insurance Companies Make Money?

Collection Of Premiums

Average yearly cost in premiums: $2,820Average cost for an annual exam: $195

Average annual profit for insurance company : $2625 per enrollee

Most people do not have a major claim throughout the year

RobSchwab.comHow Do Health Insurance Companies Make Money?

Investment Of Premiums

Naturally, the insurance companies are prepared when major claims arise

RobSchwab.comHow Do Health Insurance Companies Make Money?

Investment Of Premiums

As long as insurance companies invest wisely, they will thrive.

Premium dollars are invested in the stock market, real estate, etc

RobSchwab.comHow Do Health Insurance Companies Make Money?

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