Question of the Day

Which is greater: the average profit margin of health insurance companies or the average improper payment rates of major government healthcare programs?

Correct Answer

Tell Me More

The average profit margin of health insurance companies is about 3%, while the average improper payment rate of Medicaid is 10%, Medicare is 8%, and the Children's Health Insurance Program is 9%. An improper payment is "any payment that should not have been made or that was made in an incorrect amount (including overpayments and underpayments)." Per the U.S. Government Accountability Office: "Once fraudulent or improper payments are made, the government is likely to only recover pennies on the dollar."

DocumentationHealthcare ProfitsHealthcare Fraud



Share via Facebook
Share via Twitter
Embed into your website
About the Fact App