The Federalist has released a statement that Obamacare insurers are ‘finally’ going to make a profit… because they can ‘finally’ charge premiums that sustain their expenditures. WOW! Poor babies…
So who are these ‘poor babies’?
Anthem President Gail Boudreaux made $2.2 million, including stock awards, after working 2 months in 2017 (November and December). The previous CEO stayed on through May and only made $26.4 million in ‘realized pay’.
Molina Healthcare’s new CEO, Zubretsky, who also started in November faired quite a bit better making $19.7 million which included a ‘sign-on bonus’.
Cigna CEO took home $43.9 million including stock gains. Humana CEO had realized pay of $34.2 million. United has yet to release the data, but figures have fluctuated to as high as $124.8 million. Kaiser and Blue cross are up for grabs…
As a nonprofit, Kaiser reported Net Income of $3.1 billion in 2016. United Healthcare reported Net Income $10.82 billion in 2017. And Anthem Blue Cross came in at $2.47 billion Net Income for 2016.
So what the hey? How is it that these companies are supposedly ‘just now’ making a profit, because that’s a lot of non-profit profit and compensation flying around!
In a world where all healthcare premiums are equal, these CEO’s should be paying monthly premiums of roughly $212,500 to $1,768,000 – conservatively. Maybe then, they would feel the ‘Burn’… Because, I don’t think they have a freakin’ clue.
Apparently, this Federalist author didn’t do the math because when I research the Net Income of United Healthcare, it has increased 137% since 2008. And the CEO’s are living large on 25% increases, 46% increases, and 60% increases in total payout. So tell me again how the ‘insurers’ are just now breaking even under Obamacare?
As a comparison, physician salaries and compensation ranges between about $200,000 and $500,000 depending on the specialty – and can obviously be far greater if the physician has spiffs, patents, etc… But it is still a very far cry from the CEO compensation of ‘Health Insurers’. Poor babies.
In fact, the equalized monthly healthcare premiums of the CEO’s outstrips the total wage base of physicians! So how is it that these corporations are just now making a profit when in fact they have always made exceptional profits while boasting exceptional wages for the CEO’s and Executives?
It’s a magic act, something like the Wizard of Oz wherein the smoke and blubbering of the media exalts a story that has absolutely no basis in fact. Unless, we are exalting the “New Math” wherein 2+2 = 1… or 6… or 3, because there is no ‘correct’ answer, because then someone might cry because they were wrong – and opinion over-rules fact, and…
So if Warren Buffet has reported adjusted gross income of $63 million, and we adjust for his offshore accounts let’s bump that to $200 million, then his health insurance liability should be $2,833,333 per Month! His Income Tax liability should then be 37% or $6,166,666 – per month! Sounds fair – right?
Do you think the ‘health insurer’ would lower its monthly premium if it was income based? I think there would be a LOT of pressure, and a massive change. Imagine!