Open Enrollment...aka Open Season

[lime rickie]

I work for a small insurance company...I'm probably the only one in the business that I know who supported a universal single payer plan...not this mess. Management exhorted us to contact our senators and representatives, attend rallies, etc...they pitched gloom at us from every angle about how bad this would be for the industry. HCR is hitting us hard...complying with all the requirements is a massive undertaking. Yes, there were years and years of profits so they can't really cry poor now but this is something that could literally put us out of the health insurance business....the last two years we've had several rounds of layoffs, deep cuts, and the word now is that TIIC are waiting to see how the elections swing in November.

[keybdplyr]

Oh, I absolutely agree this whole thing is driven by profit margins....big ones......

Depending on the source, the average profit margin for the industry is typically around is 4%-8%. This is a pitiful return compared to other industries. Taco Bell has a better profit margin.

[weirdo0521]

I feel your pain and I don't want to get political either but REAL health care reform was thwarted by some very powerful interests. The package that finally passed through the legislative process was very watered down and a far cry from what this country really needs, which is single payer, universal health care. That option never even made it to the table because of scaremongering on the part of the health insurance companies and solid opposition from a particular political party which shall remain nameless.

Not to make light of your situation but are you too old to emigrate and can you learn to speak Canadian?

Getting back to the personal I hope things improve for you and your family. Good luck.

Canadians have enjoyed the luxury of coming to the U.S. for medical care and having some of the costs covered by their plans for years. Canada faces a real issue as health care changes in the U.S. They are not ready for the coming changes. The is a rush to build new hospitals since very few have been built over the last thirty years.

[piratenurse]

Oh, I absolutely agree this whole thing is driven by profit margins....big ones......

Depending on the source, the average profit margin for the industry is typically around is 4%-8%. This is a pitiful return compared to other industries. Taco Bell has a better profit margin.

Reportable net income is easily obscured because of all their very necessary business expenses. My ex was an insurance middle manager. Know how I got a week long first class trip to Hawaii with $1200 suites, parties, meals, alcohol and every amenity and activity plus airfare included? It was a little "business meeting and awards banquet". Unfortunately, we split before the all-expense paid Ireland trip. Oh, then there are the residual payments for each rep each month with percentage bonuses given up the ladder, so that the better the reps do, the more money everyone on the ladder makes. Of course, this is all included in the company's annual expenses and does not show as profit margins. Now granted, they sold annuities and other products as well and the individual residuals weren't that much, but they added up. Big time. I do know every time I turned around, we were eating in restaurants I have never been able to afford since, going to golf tournaments, employee appreciation events (AFLAC gave us all masseuses), etc. Trust me, they are spending your money foolishly and they make JB look like an amateur; at least he admits he does it.

I don't think the perks are as good at Taco Bell.

[piratenurse]

Here is an article about health insurance CEO compensation. I want their job. I want to make a house a week. Compared to my house, that's 4 houses a week.

A few months back we posted the Total Compensation for a number of Health Insurance Company CEOs for 2007. Those numbers, culled from the companies’ SEC filings (Schedule 14A) appears immediately below. Below that are the numbers for 2008, courtesy of FierceHealthcare.com through Jan Rodolpho, RN.

As you can see, the year has brought decreases for some CEOs (but not all). One wonders, discretion being the better part of valor, if the clamor for health care reform and the pursuit of a Public Plan, has counseled caution –for the time being– regarding executive compensation. If the timing for further compensation has merely been adjusted so as to backload payments until after the health care reform debate is settled. Either way, the numbers pretty much speak for themselves. Perhaps a slight bit of context is in order, however: it has struck me that Aetna’s Ronald Williams received $24,300,112 last year. That’s $467,309.85 per week. That’s a house. Maybe not a house that Mr. Williams would live in, but a house nonetheless. The man makes a house a week. And interestingly enough, if Mr. Williams were to eschew the purchase of a house on any given week and instead look to deposit the money in a bank– in order to remain FDIC insured (up to $250,000)– he would actually need to open more than one account–every week. Lest we lament the fate of the other CEOs on the list, in 2008 Ms. Braly had to get by on $189,311.76 per week, and Mr. Hemsley had to somehow manage on $62,327.73 per week (but perhaps he was able to save a little from last year when he made $253,164.02 per week).


Ins. Co. & CEO With 2007 Total CEO Compensation

* Aetna Ronald A. Williams: $23,045,834
* Cigna H. Edward Hanway: $25,839,777
* Coventry Dale B. Wolf : $14,869,823
* Health Net Jay M. Gellert: $3,686,230
* Humana Michael McCallister: $10,312,557
* U.Health Grp Stephen J. Hemsley: $13,164,529
* WellPoint Angela Braly (2007): $9,094,271
L. Glasscock (2006): $23,886,169

Ins. Co. & CEO With 2008 Total CEO Compensation

* Aetna, Ronald A. Williams: $24,300,112
* Cigna, H. Edward Hanway: $12,236,740
* Coventry, Dale Wolf: $9,047,469
* Health Net, Jay Gellert: $4,425,355
* Humana, Michael McCallister: $4,764,309
* U. Health Group, Stephen J. Hemsley: $3,241,042
* Wellpoint, Angela Braly: $9,844,212

[keybdplyr]

Aetna gross revenues $31.0 billion in 2008. CEO salary $24.3 million. Cutting his salary in half will reduce my $1000 monthly premium to $999.60. Still a bit high. Fire his butt. Another 39.5 cents a month saved. $999.21 monthly. Problem solved?

Middle managers, etc. Let’s cut their perks $310 million a year and “unhide” another 1 percent profit margin. Take that 1 percent profit use it to reduce premiums. My $1000, sorry $999.22 monthly premium (I forgot I fired the CEO earlier) goes down to $989.22 monthly. Now were talking. Take another $300 million. Now were at $979.33. Let’s also cut wages 300 million (same as cutting perks, bonuses, etc.) for a total of almost 1 billion dollars a year taken from the employees. My monthly premium...$969.53.

Healthcare crisis solved.

[Skibo]

If these insurance companies are making so much money by "ripping off" their customers why hasn't a group of outraged "smarter" people gone and formed their own company with lower rates? Lower rates ==>> more customers, they could corner the market and save the entire healthcare industry.

[ScarletB]

Don't get me started on this. My small regional bank was taken over by a much larger one. Up until then we had a good insurance provider, we paid reasonable premiums and had great coverage AND our company was profitable enough that we were attractive as an acquistion - we weren't acquired because we were in trouble, in fact they paid a premium for us. NOW the uber smart people at the new place decided to put us all under their absolutely crappy AETNA coverage - first of all there are TWO dental providers in Aetna's network in the whole state so now we're all even paying for most of our bi-yearly cleanings and exams. There are few Doctors in the network either so every time you go for just about anything you end up paying something. AND, to add insult to injury your premiums are based on how much you make - I'm a commissioned salesperson and I had a great year LAST YEAR - this year isn't as good plus my pay structure has changed but.. you got it... I'm paying based on last year.

Stupid.

[lime rickie]

Those sort of trips have ALWAYS been perks for the Sales side of the insurance business. My employer has every single year taken the entire sales force on major outings...trips to Vegas, Hawaii, Florida...there are always golf tournaments, trips to ball games, etc. We lost a ton of really great people last year due to layoffs...how many jobs could be saved if they stopped that other stuff? It's truly a disgrace.

Oh, I absolutely agree this whole thing is driven by profit margins....big ones......

Depending on the source, the average profit margin for the industry is typically around is 4%-8%. This is a pitiful return compared to other industries. Taco Bell has a better profit margin.

Reportable net income is easily obscured because of all their very necessary business expenses. My ex was an insurance middle manager. Know how I got a week long first class trip to Hawaii with $1200 suites, parties, meals, alcohol and every amenity and activity plus airfare included? It was a little "business meeting and awards banquet". Unfortunately, we split before the all-expense paid Ireland trip. Oh, then there are the residual payments for each rep each month with percentage bonuses given up the ladder, so that the better the reps do, the more money everyone on the ladder makes. Of course, this is all included in the company's annual expenses and does not show as profit margins. Now granted, they sold annuities and other products as well and the individual residuals weren't that much, but they added up. Big time. I do know every time I turned around, we were eating in restaurants I have never been able to afford since, going to golf tournaments, employee appreciation events (AFLAC gave us all masseuses), etc. Trust me, they are spending your money foolishly and they make JB look like an amateur; at least he admits he does it.

I don't think the perks are as good at Taco Bell.

[Skibo]

Those sort of trips have ALWAYS been perks for the Sales side of the insurance business. My employer has every single year taken the entire sales force on major outings...trips to Vegas, Hawaii, Florida...there are always golf tournaments, trips to ball games, etc. We lost a ton of really great people last year due to layoffs...how many jobs could be saved if they stopped that other stuff? It's truly a disgrace.

This is true. A ton of companies have annual boondoggles. My wife's company books 180 rooms at the Venetian every year for a "conference". Two years ago, they had a $250,000 credit at a nice hotel 100 miles away from a canceled event. Employees were encouraged to take weekend trips to "burn" the credit 6 weeks before it expired. Good times. $500 bottles of wine do taste better than $25 bottles.

The cable industry is another where money is burned regularly. bonfires

[keybdplyr]

Aetna salaries and related benefits were 2.62 billion in 2008. So, if they took away ALL perks and fired EVERYBODY this would reduce my premium by about 12 percent. Instead of $1000 monthly it would be $882. Problem solved?

[ScarletB]

I apologize if anyone here works for Aetna but their coverage is LOUSY and their premiums are so much higher than what I paid for CBA prior to this.

[lime rickie]

My own feeling is that "managed care" was the beginning of the end...the networks, the cost-shares, the "precertification" and coverage management...the death knell.