Health Insurance Companies Raise Executive Salaries Along With Rates

Health insurers warned against the ObamaHowever, an increasing number of people are doubting
administration's reforms. According to them, thethe industry's motives. During a period when
premiums from the guaranteed influx of customersconsumers and small businesses have been forced to
complying with the law's individual mandate would notcut back, some chief executives have not followed
offset the higher medical costs resulting from theirsuit. In fact, most of them effectively received raises!
being forced to accept patients with pre-existingAccording to filings with the Security and Exchange
conditions.Commission, the five major for-profit health insurance
Indeed, several major health insurance companiesproviders paid their heads about $200 million during the
have increased their rates since healthcare reformlast fiscal year.
passed in March. Democrats in Congress have sternlyThe most egregious example is with Cigna; former
told insurers that purposely increasing rates ahead ofchief H. Edward Hanway received a nearly $111 million
the deadlines for rate caps is strictly verboten. Itgolden parachute for his retirement. That does not
remains to be seen if recent increases would beeven include the over $20 million his successor was
considered justified.also paid in 2009. That is a hard pill for many to
Said increases include a 29% jump in health insuranceswallow when affordable health insurance has
rates for Humana policyholders in Utah, as well as abecome more difficult to find.
nearly 16% increase in individual premiums for RhodeOn the other hand, kudos must be given to the CEO
Island residents under UnitedHealth. If these are trulyof Aetna. Ron Williams' total compensation (consisting
based on medical inflation and increased administrativeof base salary, bonuses, and stock options) dropped
costs, the changes are painful, yet reasonable.from $24.4 to $18.2 million.