Healthcare

CEO pay and your health insurance premiums.

There is no meaningful connection! CEO pay does not drive up the cost of health insurance.

The media and advocates for a Medicare-for-all concept reinforce the notion that a cause for growing premiums is the salary of CEOs. That is not true.

The cost of medical insurance continues to rise and will get even worse with the Republican attacks on our health care system.

As a senior citizen with Aetna supplemental insurance, my co-pay has tripled from $10 in 2013 to $30 in 2016. Aetna’s CEO’s salary was $18 million in 2016—up more than 8 percent from 2015. His salary is typical. If we can find a doctor to head up the Center for Disease Control for $375,000, why are our health insurance executives making 10s of millions?

State Sen. Terrence Murphy and Assemblyman Kevin Byrne, what have you done to protect us from excessive executive salaries driving up the cost of health insurance?

CEO pay, in fact all compensation, is an insignificant part of health insurance premiums. And, in the case mentioned above, the company derives it’s income from sources beyond health insurance.

What are celebrities, sports stars, media executives, college coaches, ex presidents and many others making tens of millions? All of which directly impact what average people pay for various services.

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1 reply »

  1. I often wonder why CEOs make millions of dollars in general. I wonder what their board of directors are thinking. I believe only a hand full of CEOs are actually worth a few million a year. But then I also can’t believe athletes get millions of dollars to play games. But chances are that $18m is a bargain compare what the government would waste per year in creating a bureaucracy for managing M4A.

    As far as the stating that the head of CDC only makes $375k, so what. The US President only makes $400k. People who take that job are not taking it for the money. As far as I can tell the last non-millionaire president was Truman. I am sure that the head of the CDC could find a 7-figure job at some pharmaceutical company as the head of research if he was into the money.

    These arguments are very weak and do nothing but distract from the real cause of higher healthcare costs.

    Like

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