Helping the Common Worker

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So Aetna, a health insurer, is “helping” their low end workers by setting the floor wage at $16 an hour.  A huge increase! Here is a snippet from an article in a recent WSJ:

Amid signs of a tightening labor market, Aetna Inc. plans to boost the incomes of its lowest-paid workers by as much as a third in a bid to draw top prospects and reduce turnover.

Sounds great, right?  But weren’t they supposed to refunding money back to their customers if they were raking it in instead of now making it impossible for other industries to compete for these workers?  Wasn’t the ACA supposed to put in controls so they could only make so much profit?  I don’t understand these MLRs (medical loss ratios) but it just seems that hiding profit as salaries, from the CEOs to these low end workers, is a great way to make it seem that you are not making much money.  Someone please explain this to me.

Douglas Farrago MD

Douglas Farrago MD is a full-time practicing family doc in Forest, Va. He started Forest Direct Primary Care where he takes no insurance and bills patients a monthly fee. He is board certified in the specialty of Family Practice. He is the inventor of a product called the Knee Saver which is currently in the Baseball Hall of Fame. The Knee Saver and its knock-offs are worn by many major league baseball catchers. He is also the inventor of the CryoHelmet used by athletes for head injuries as well as migraine sufferers. Dr. Farrago is the author of four books, two of which are the top two most popular DPC books. From 2001 – 2011, Dr. Farrago was the editor and creator of the Placebo Journal which ran for 10 full years. Described as the Mad Magazine for doctors, he and the Placebo Journal were featured in the Washington Post, US News and World Report, the AP, and the NY Times. Dr. Farrago is also the editor of the blog Authentic Medicine which was born out of concern about where the direction of healthcare is heading and the belief that the wrong people are in charge. This blog has been going daily for more than 15 years Article about Dr. Farrago in Doximity Email Dr. Farrago – [email protected] 

  3 comments for “Helping the Common Worker

  1. Mary K Freel
    January 15, 2015 at 12:17 pm

    So they shouldn’t raise the wages of their workers so that others can keep their wages down too? Might I remind you that $16 an hour will equal $32,000 a year–not exactly a princely sum. You missed the mark on this one.

    • Doug Farrago
      January 15, 2015 at 12:58 pm

      Depends on your perspective. The CEO made $30 million last year. He could have paid for that increase and they STILL could have refunded some premiums.

  2. RWatkins
    January 14, 2015 at 10:14 am

    “So Aetna, a health insurer, is “helping” their low end workers by setting the floor wage at $16 an hour.”

    Does this include MDs?

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