Insurance executives may be the ones benefiting most from the Affordable Care Act
Chief executive officers from some of the largest health insurance companies in the U.S. have seen their pay skyrocket recently. The steep increase in pay CEOs have been seeing is, somewhat ironically, due to the Affordable Care Act. This is ironic because the insurance companies benefiting from this trend have actually been quite outspoken with their opposition of the federal health care reform law. This issue may go a long way in highlighting just how important political posturing is when it comes to matters concerning reform and the national insurance market.
Aetna CEO brings in $30.7 million compensation package
Aetna CEO Mark Bertolini is the recipient of the largest compensation package that a CEO has received since the passing of the Affordable Care Act. Bertolini brought in $30.7 million in 2013, but this is being considered a “special, one-time, performance-based retention award.” Aetna performed quite well in 2013, managing to reach higher levels of customer retention and satisfaction. Aetna has managed to find success in the market despite challenging the Affordable Care Act on some of its more problematic issues.
Legislators take issue with higher insurance CEO pay
The fact that many CEOs from private insurance companies are making so much more money due to the provisions of the Affordable Care Act has become a concern for some federal legislators. Representative John Conyers (D-Michigan) notes that “the United States’ health care sector has been in need of repair for decades, and over the top executive compensation is emblematic of the failure of our private health insurance system.” Conyers suggests that the Affordable Care Act is a good place to start when it comes to health care reform, but more must be done to address the aggressive for-profit attitude of the insurance sector.
Consumers are uncomfortable with insurance profits
The controversy surrounding CEOs making more money is punctuated by the fact that health insurance costs are continuing to rise in many parts of the country. As premiums grow, many consumers are expressing concern for their ability to afford their insurance coverage. These people are turning their ire to insurance executives, whom are getting paid more while also claiming that insurance costs need to be addressed for the sake of the consumer.