Posted 12/11/11 on Forbes
While Texas Governor Rick Perry rails against the evils of federal involvement in health care on the GOP presidential campaign trail, businesses back home are busy raking in record profits from government dollars.
“By largely exiting the employer market and focusing on Medicare and Medicaid, Texas HMOs have enjoyed strong and growing profits in the last six years,” concluded the newly issued Texas Health Market Review 2011, an analysis of financial filings by state plans. It added, “HMOs here now are focused on the niche businesses of Medicare and Medicaid, both of which were strongly profitable in 2010. Overall, Texas HMOs reported net income of $404.1 million in 2010, or 3.3% of underwriting revenues of $12.41 billion.”