The Affordable Care Act has outraged many Americans, particularly those whose insurance premiums rose significantly with the introduction of the act. However, no one is less outraged than the CEOs of these major healthcare organizations. Why? Because CEOs of Fortune 500 health insurance companies saw a major increase in their own paychecks in recent months. As the rest of us face rising health insurance premiums and less comprehensive health insurance coverage thanks to the ACA, CEOs are making more than ever; 19 percent more, in fact.
Aetna’s CEO Mark Bertolini received a $30.7 million compensation package last year for his work, making him the recipient of the largest ever payout to any health insurance executive since the introduction of the ACA. Additionally, his payout is more than the combined compensation packages of the second and third highest paid health insurance CEOs. Bertolini’s compensation package makes for a 131 percent increase in pay for the Aetna CEO.
CEOs at Molina Healthcare and Centene are health insurance companies that specialize in private Medicaid plans saw doubled compensation packages in 2013. In 2012, J. Marion Molina received approximately $5 million in compensation. In 2013, he received $11.9 million. Michael Neidorff, CEO of Centene, saw his salary increase from $8.5 million in 2012 to $14.5 million in 2013.
Compensation information was released right around the same time these Fortune 500 companies announced their first quarter 2014 profits were much higher than expected while simultaneously warning policyholders to expect increased insurance premiums in 2015.
Democratic Representative John Conyers Jr. of Michigan is quoted as saying, “For far too long, private health insurance executives have received outsized compensation packages – subsidized by the ever-increasing premiums of hardworking Americans – while millions of low income individuals and those with pre-existing conditions went uninsured.”
America has one of the highest healthcare costs in the world, yet it also has some of the worst health outcomes in the world. Many believe that the money being given to CEOs would be better spent on saving lives.
(Photo by David McNew/Getty Images and Healthcare NOW)
