Medical Health Insurance Companies Raise Executive Salaries Together With Rates
Health insurers cautioned from the Obama administration’s reforms. Based on them, the premiums in the guaranteed increase of consumers submission using the law’s individual mandate wouldn’t counterbalance the greater medical costs caused by their having to accept patients with pre-existing conditions.
Indeed, several major medical health insurance companies have elevated their rates since healthcare reform passed in March. Democrats in Congress have sternly told insurers that intentionally growing rates in front of the deadlines for rate caps is just verboten. It remains seen if recent increases could be considered justified.
Stated increases incorporate a 29% begin medical health insurance rates for Humana policyholders in Utah, in addition to a nearly 16% rise in individual premiums for Rhode Island residents under UnitedHealth. If they are truly according to medical inflation and elevated administrative costs, the alterations are painful, yet reasonable.
However, an growing number of individuals are doubting the industry’s motives. During an occasion when consumers and small companies happen to be forced to scale back, some chief executives haven’t adopted suit. Actually, many of them effectively received raises! Based on filings using the Security and Exchange Commission, the 5 major for-profit medical health insurance providers compensated their heads about $200 million over the past fiscal year.
Probably the most egregious example is by using Cigna former chief H. Edward Hanway received a virtually $111 million golden parachute for his retirement. That doesn’t even range from the over $20 million his successor seemed to be compensated in ’09. That’s a hard pill for a lot of to swallow when affordable medical health insurance is becoming more difficult to get.
However, kudos should be provided to the Chief executive officer of Aetna. Ron Williams’ total compensation (composed of base salary, bonuses, and investment) dropped from $24.4 to $18.two million.
