“Bonusgate,” the dissatisfaction with excessive executive compensation practices, has shifted its sights from the financial sector to health care. White House officials may turn their attention to health care compensation practices, reports CNNMoney. Last month, Rep. Henry Waxman (D-CA), head of the House Energy and Commerce Committee, asked for the pay figures to obtain a wider perspective on compensation practices in the health-care sector. Waxman wanted to examine how paid-premiums are spend on patient care. “I think they will get some information that will surprise policyholders, because there’s not a great deal of awareness of how much these executives do make,” said Wendell Potter, a former Cigna vice president who now works for a left-leaning media group. “A lot of money they’re paying in premiums is going to make executives richer and richer every year.” Those in the health-care industry dispute the insinuation that executive pay is driving up premium costs: “These letters were sent at a time when the industry dared to raise questions as to whether there should be a government run plan,” said Robert Zirkelbach, a spokesperson for America’s Health Insurance Plans, the industry’s lobbying group. “Health insurance profits are not what’s driving health care costs.”
Spotlight Now on Health-Care CEO Pay
White House officials shift their scrutiny toward health-care executive compensation practices.
September 2, 2009