Gauthier, Houghtaling and Williams Law Cites Report about Health Insurance Company Margins
According to John W. Houghtaling of Gauthier, Houghtaling and Williams, the office of Congressman Pete Stark (D- California) recently reported the earnings and profit margins of the nation's leading health insurance companies. According to the Gauthier, Houghtaling and Williams managing partner, this report estimates that these companies earned around $12 billion last budget year.
- New Orleans, LA (1888PressRelease) March 02, 2011 - Last year alone, according to John W. Houghtaling of Gauthier, Houghtaling and Williams, the five major American health insurance companies earned around $12 billion in profits. John W. Houghtaling is managing partner of Gauthier, Houghtaling and Williams with offices in Louisiana and Texas. The Gauthier, Houghtaling and Williams managing partner was referencing a report from Congressman Pete Stark (D- California) that said these insurers earned more money than the top energy firms.
"According to the report which was referenced in The Hill congressional newspaper," stated attorney Houghtaling of Gauthier, Houghtaling and Williams, "UnitedHealth, WellPoint, Aetna, Humana, and Cigna were named as being more profitable than not only the top energy firms but also the construction, aviation and other similar industries." Representative Stark maintains that three of those insurers "padded their pockets" with more than $3.5 billion. "The other two firms brought in around $800 million," added Gauthier, Houghtaling and Williams managing partner John W. Houghtaling.
The report released by the senior House Democrat and dated February 24, 2011 was met with an immediate rebuttal from the health insurance lobby, the Gauthier, Houghtaling and Williams' attorney said. "The response of the health insurance lobby simply claimed that profit margins as a whole have dropped since 2005," explained the Gauthier, Houghtaling and Williams managing partner. The health insurance lobby response is in stark contrast to calls for greater transparency from major insurance companies, stated the Gauthier, Houghtaling and Williams lawyer.
"The excessive profits of the health insurance industry come at a time when healthcare is an issue of importance to so many Americans. It is reminiscent of what we experienced with property insurers in the aftermath of Hurricane Katrina," Houghtaling said. At the time the law firm of Gauthier, Houghtaling and Williams was handling claims for hundreds of victims of the storm. "Losses all along the Gulf Coast were substantial and the proof was strong and undeniable," Houghtaling recalls. "Yet, the insurance companies repeatedly denied claims to avoid payouts.
Based on that behavior, Houghtaling said, it was no surprise to him to read research conducted by the Consumer Federation of America in 2006 which reported record profits for the insurance industry one year after Hurricane Katrina. According to the study, the profits were the result of excessive premiums and the reduction of coverage. "Now, we hear of similar profiteering from the health insurance industry at a time of crisis. It is very disappointing."
Gauthier, Houghtaling and Williams is a nationally recognized law firm based in New Orleans, Louisiana with over thirty years of major litigation experience. The Gauthier, Houghtaling and Williams law firm also has offices in Houston, TX and has extensive experience in insurance litigation. John W. Houghtaling has been managing partner of Gauthier, Houghtaling and Williams since 2005.
For more information about Gauthier, Houghtaling and Williams, go online to http://ghwlegal.com.
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