Many governors and attorneys general – all Republican – plus Republican congressional leaders and Republican candidates for president, claim that the national health insurance law (which they refer to as “Obamacare”) is too costly to operate, takes care of too many of the sick and lame, is unconstitutional and is probably an un-American terrorist plot. These folks have been having conniption fits in an attempt to strip medical care from the government and restrict it to the tender hands of the private sector – otherwise known as insurance companies.
The topic is complex and the argument confusing, to say nothing of being often deliberately misleading. So this week, Professor Lucius Flatley thought it worthwhile to present to the coffee shop group an illustration of the relative costs between operation of the government Medicare program (which have not exceeded 3 percent in the last decade) versus free-market costs (which have been more than 20 percent).
To illustrate, he chose the salary levels of those who administer the two different programs – who is paid what.
In recent years chief executives of various health organizations have done very well indeed. In addition to various schemes of stock manipulation and retirement guarantees, these people enjoy such bennies as personal use of company cars and company jets, plus often receive such services as home maintenance, education of children, vacation jaunts and country club memberships.
Let’s take a look. (Note: The years and specifics in this list vary a bit. The information is found in different sources and is not always reported in identical formats.)
United Health: Stephen J. Hemsley, $13,200,000 in direct pay (2008); $127,100,000 in stock options; $744,000,000 unexercised stock options; personal residence assessed at $6,500,000.
Humana: Michael McCallister, five-year compensation total, $15,000,000 in direct pay; $22,000,000 in stock options exercised; $60,000,000 in unexercised stock options; personal residence assessed at $6,900,000.
CIGNA: Edward Hanway, five-year compensation, $120,005,100 in direct pay; $28,881,000 in unexercised stock options; personal residence assessed at $13,600,000.
Aetna: Ronald Williams, average over last two years, $23,500,000 salary; $196,000,000 in unexercised stock options.
Coventry: Allen Wise, $13,052,000 salary; $12,600,000 sale of stock 2004; $46,410,000 sale of stock 2005; $6,750,000 options exercised 2005; $4,798,000 options exercised in 2006; personal residence assessed at $3,275,000.
WellPoint: Angela Braly, $9,844,000 compensation; $4,868,000 sale of stock; $4,566,000 options exercised.
And a few more examples of executive rewards:
Centene: Michael Neidorff, total compensation $8,774,483.
Amerigroup: James Carlson, total compensation $5,292,546.
Health Net: Jay Gellert, total compensation $4,425,355.
Medco Health: David Snow, total compensation $22,190,000.
St Jude Medical: Daniel Starks, $15,950,000.
Community Health System: Wayne Smith, $13,340,000.
Varian Medical Services: Timothy Guertin, $8,810,000.
Cardinal Health: George Barrett, $5,600,000.
In comparison, the highest salary range of any government employee – the very top, the equivalent of a four-star general – is $182,000. And there are no stock benefits or company jets.
Thought for the week: When thinking of government, talk happiness; the world is sad enough.
Rodney Quinn, a former Maine secretary of state and university history and government instructor, lives in Westbrook. He can be reached at rquinn@maine.rr.com.
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