Description: The nation’s major health insurers are barreling into a third year of record profits, enriched in recent months by a lingering recessionary mind-set among Americans who are postponing or forgoing medical care.

Source: NYTimes.com

Date: 05/13/2011

Link: http://www.nytimes.com/2011/05/14/business/14health.html?ref=business

Questions for discussion:

• Summarize the financial relationships between health insurers, providers, and clients?
• What is the current situation for the industry?
• How likely is the situation to remain this way?
• Is paying more dividends and raising reserves a good strategy?
• How should financial managers prepare for the change when it comes?