Thursday, November 12, 2009
Oh, those poor insurance CEOs
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Robert Roth
Roth is a retired surgeon living in Wirtz.
Hearing of incomes that health insurance company CEOs largely deal themselves, a friend commented, very sincerely, "But they are responsible for managing coverage for thousands of subscribers. Can you imagine what stress they live under?"
Just think:
An average health insurance CEO's compensation is $12 million a year, $6,000 an hour. A major CEO reportedly is paid $57,000 an hour, $114 million a year. The top health insurance company CEO's gross income is $122 million a year, $61,000 an hour.
Meaningless humongous figures? Pro rating their work time (2,000 hours a year), check this:
While spending 10 minutes over a latte, the average CEO earns $1,000. If the major CEO spends 10 minutes over a Starbucks, he earns, $9,500. If the top CEO spends 10 minutes on a coffee break, he earns $10,170.
To relieve stress at work:
When an average CEO spends five minutes in a rest room, she earns just $500. When the major CEO spends five in her private bathroom, she earns $4,750. When the top CEO spends five minutes in her washroom, she earns $5,085.
A satiric perspective regarding comparative family costs: An average American uses a roll of toilet tissue every four days. At 20 cents a roll x 90 rolls a year, this costs him $18. In five minutes, the first CEO earns the equivalent of a 28-year supply of tissues; the second earns 264 years' worth, and the third earns 282 years' worth. Financially, sitting pretty all day under stress in the workplace, in just five minutes all three CEOs never need worry again about having an adequate supply of toilet tissues.
Now, the serious egregiousness of these CEO incomes: Because the health insurance premium for an average American family of four is $12,000 a year, No. 1's annual compensation could provide yearly coverage for 1,000 of his clients' annual family premiums. No. 2's could cover 9,500 premiums. No. 3's could cover 10,167 family premiums.
Little wonder sitting bosses of health insurance companies are furiously fighting health care reform that challenges their pickings. Competition, by including a vigorous public option in the final health care reform bill, will eventually induce a take-it-or-lose-it, rational CEO pay scale -- and also reduce general overhead.
The Roanoke Times ran a headline (Oct. 26) "Health insurer profits not so fat, despite some claims" over a story that reported "Profits barely exceeded 2 percent of revenues." For an average American to believe that "fact check," his cranium would have to fit well into a tall cone-shaped hat.
God forbid if the insurer company CFO should report a 20 percent net profit margin. The solution: Simply cut the profit report by 18 percent by awarding an extra $10 million to "Joe" CEO, an extra $5 million to "Jim" vice CEO, and so on down the line. And, of course, also increase dividends to company investors by 2 to 3 percent -- which is very good for business. Definitely the best solution is to keep top executives and investors happily healthy while announcing the profit margin is anemic at 2 percent.
Industry lobbyists, 24/7, are using million-dollar TV, newspaper and Web ads touting "government takeover," a nightmare of across-the-board socialism, while demanding "keep hands off our health care." Little wonder they are furiously fighting any health care reform option that threatens pickings and the financial health of their investors.
With apologies to health insurance CEOs, the ultimate money- life-saving perspective for everyone's health care is forcefully stated in The Huffington Post: "Rescuing Health Reform: Why Doctors Should Practice Lifestyle Medicine," by Mark Hyman, M.D.; Dean Ornish, M.D., and Mike Roizen, M.D., tinyurl.com/yjqw7y2.
"The chronic diseases that affect 160 million Americans account for 78 percent of our $2.1 trillion in annual health care costs. Lifestyle and environmental factors -- our diet, sedentary lifestyle, smoking and chronic stress -- are the most important underlying causes of these diseases. ... "
"On Aug. 6, Sen. Ron Wyden, D-Ore., introduced new legislation, the 'Take Back Your Health Act' (S. 1640) that includes payment for intensive lifestyle medicine as treatments, not just prevention. ... "
"No one profits from lifestyle medicine, so it is not part of medical education or practice. It should be the foundation of our health care system." Unfortunately, current health insurance doesn't pay for intensive lifestyle medicine.
Get the word to our senators and congressmen: The American people under 65 need a Medicare-like public option, aka consumer option, with intensive lifestyle medicine as treatments, not just prevention.
