If health insurance companies are at fault for rising costs than why are their profit margins so low?

compared to other businesses? I've heard they only have a 6% profit margin.
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Actually, the profit margin is 3% or less for many of them. People who believe that profit is the problem are delusional. Consumer demand for more and more coverage for less and less out of pocket at the time of service is largely responsible. People have become out of touch with the real cost of health care and since it costs so little at the time of service, they tend to overuse the system. Naturally, higher demand will ultimately result in higher cost. Combine that with state mandates for certain coverage levels and it's a recipe for out of control cost. The fact is that it's expensive because people over use it and because everyone who's insured is paying for other people to have Viagra, substance abuse treatment and mental health services... whether they ever need them or not. Another factor is government funded health programs. Medicaid and Medicare offer incredibly low reimbursement rates. Often times, they reimburse at less than the cost of providing the service. That loss has to be made up somewhere, and it's made up on the backs of the cash paying patients and those with private insurance.
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