The Facts: Health Insurance Profits

HEALTH INSURANCE PROFITS:

WHILE PATIENT COST-SHARING IS GOING UP, HEALTH INSURANCE COMPANIES ARE DOING VERY WELL.

The national average base salary for all insurance industry CEOs: $544,100 (not including bonuses and stock options). Compare this to the national family-practice physician average salary: $165,300 “And those numbers almost certainly understate the payment gap, since top executives frequently earn the bulk of their income in non-salary compensation…the chief executive of Aetna, earned a salary of about $977,000 in 2012 but a total compensation package of over $36 million, the bulk of it from stocks vested and options he exercised that year.”

And Medicine’s Top Earners Are Not the M.D.s

In New Jersey “the CEO of Horizon drew a salary of nearly $935,000 and bonuses of $7.8 million in 2009. Pay and bonuses to the company's nine highest-paid executives that year totaled $24.3 million, up from $15.1 million the previous year.”

Profit and salaries are only going up.

“Profit jumped almost 29% year over year in the first quarter, totaling more than $1.4 billion. UnitedHealth's revenue increased 13% to $35.8 billion.”
UnitedHealth books another profitable quarter, raises 2015 outlook
“Aetna recorded more than $2 billion in profit in fiscal 2014, the highest level in the company’s history and a signal that healthcare reform continues to treat the health insurance industry well.” Aetna closes 2014 with record profit, up 6.6% for the year
“Cigna's fourth-quarter net income was $467 million, compared with $361 million in the same period of 2013. Profit on the year increased 42% to $2.1 billion.”
Cigna closes 2014 with profitable quarter
“Simply put, greater access to health insurance has led to more customers for the insurance giants. And UnitedHealth is not the only company to benefit. The other four members of the so-called Big Five health insurers -- Aetna (AET), Cigna (CI), Humana (HUM), and Anthem (ANTM) (formerly WellPoint) -- have all beaten the S&P 500 over the past five years or so as well.”
Thanks, Obamacare! Health insurer stocks soar