lotsofpulp • 14 hours ago

But Highmark, the parent organization, is still a non profit. Based on their revenue and expenses on their 990 going back a decade, the entire organization is not delivering profit to any owners, it’s just spending money earned in its for profit subsidiaries elsewhere in its org.

Specifics aside, I think it is conclusively shown that no health insurance / managed care organization earns a ton of profit margin. No one is going to become billionaire rich by starting up a managed care organization, because they will spend almost all they earn.

It’s such a low profit margin business, that Buffett, Dimon, and Bezos abandoned it:

https://www.healthcarefinancenews.com/news/haven-disbands-en...

1
inferiorhuman • 13 hours ago 

  But Highmark, the parent organization, is still a non profit.
So? The Mozilla Foundation is non-profit but Mozilla Corporation is for profit. They're delivering profit, just with an added layer of indirection. In this case the Highmark parent is technically a non-profit but e.g. Highmark BCBSD, the Delaware arm, is a for profit BCBS licensee.

1 reply
lotsofpulp • 12 hours ago

> They're delivering profit

To who? Are there shareholders profiting? Employees on the take?

> Unlike the non-profit Mozilla Foundation, and the Mozilla open source project, founded by the now defunct Netscape Communications Corporation, the Mozilla Corporation is a taxable entity. The Mozilla Corporation reinvests all of its profits back into the Mozilla projects.

https://en.wikipedia.org/wiki/Mozilla_Corporation

It’s the same with Highmark, assuming there isn’t massive fraud happening.