Executives at health insurance giants cash in as firms plan fee hikes

[n2doc]

Leaders of Cigna, Humana, UnitedHealth, WellPoint and Aetna received nearly $200 million in compensation in 2009, according to a report, while the companies sought rate increases as high as 39%.



By Noam N. Levey, Los Angeles Times
August 11, 2010

Reporting from Washington — The top executives at the nation's five largest for-profit health insurance companies pulled in nearly $200 million in compensation last year — while their businesses prepared to hit ratepayers with double-digit premium increases, according to a new analysis conducted by healthcare activists.

The leaders of Cigna Corp., Humana Inc., UnitedHealth Group and WellPoint Inc. each in effect received raises in 2009, the report concluded, based on an analysis of company reports filed with the Security and Exchange Commission.

H. Edward Hanway, former chief executive of Philadelphia-based Cigna, topped the list of high-paid executives, thanks to a retirement package worth $110.9 million. Cigna paid Hanway and his successor, David Cordani, a total of $136.3 million last year.

Only one executive in the list actually saw his paycheck shrink last year: Ron Williams, the CEO of Hartford, Conn.-based Aetna Inc., earned nearly $18.2 million in total compensation, down from $24.4 million in 2008.

"Most families are struggling to hang on. Employers are struggling to stay in business. And these guys were giving themselves huge raises," said Ethan Rome, executive director of Health Care for America Now, a coalition of advocacy groups that prepared the report.

A spokeswoman for WellPoint said executives' compensation reflects their effort to improve care and hit corporate goals.

more

http://www.latimes.com/health/la-fi-insurance-salaries-20100811,0,7386070.story

[Autumn]

1. Thank God for insurance finance reform,

and that's all I can say.

[PA Democrat]

2. Recommended. I am frightened, yes actually frightened at the thought

of how much our insurance premiums will go up for next year. And since 3 of 4 family members have "preexisting conditions" we are basically captive to the whims of insurance execs of for at least the next 3 years.

[Donnachaidh]

3. *historic* compensation for writing *historic* reform

Yeah -- that's the CHANGE we voted for. :sarcasm: