Good News! Health Insurers CEOs Continue to Get Wealthier!

I am not sure if you heard the news or not so here it is:

Nearly all of the largest publicly traded health insurance companies gave their CEOs a pay raise in 2018. That includes UnitedHealth Group, whose CEO David Wichmann’s total compensation reached $18.1 million.

Hooray! I was so worried about these guys. They keep claiming that they are being screwed over by the ACA, and need that risk corridor money, but somehow they keep paying their CEOs tons of cash. And their stocks and profits continue to soar.

  • The CEOs of the eight largest publicly traded insurance companies—including pharmacy behemoth CVS, which acquired insurer Aetna—made $143.5 million in total compensation in 2018, up 14.4%.
  • Meanwhile, those same companies recorded a combined $21.9 billion in profits in 2018 on revenue of $718 billion

This needs to stop. I don’t think a single payer system is the way to go. I want real competition or a free market to bring insurance prices down. What they have no is collusion and monopolies.

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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] 

  6 comments for “Good News! Health Insurers CEOs Continue to Get Wealthier!

  1. R Stuart
    January 23, 2020 at 12:33 pm

    “Value-based” payment for thee, but not for me.

  2. Laurence J Sloss MD
    January 22, 2020 at 10:11 pm

    How about hospital administrators, esp nonprofits? The Harvard-affiliated Boston teaching hospital CEOs are well into 7 figures …

  3. JRDO
    January 22, 2020 at 8:56 am

    “…real competition or a free market…” is what causes “collusion and monopolies”.
    It happens in all industries- finance, manufacturing, healthcare etc.
    The only way to prevent it is effective regulation which requires (gasp) government involvement.

    • Rick
      January 22, 2020 at 12:34 pm

      There is NO “effective regulation” by the government. Regulation is what has poisoned our society. Dissolve all the government agencies that “regulate” and let the free markets rule.

    • Pat
      January 22, 2020 at 1:07 pm

      Or perhaps do away with all pharmaceutical tax breaks, subsidies, and stupid ACA supports?

  4. John Hayes
    January 22, 2020 at 7:50 am

    Completely correct Doug! It needs to be 100% free market and fully transparent!

Comments are closed.