Health Insurance Executives Rake in Cash, Hike Premiums Higher

Health insurance companies are continuing to charge double-digit increases in premium rates, even though profits are already skyrocketing and executives are raking in generous pay packages. While people struggle to afford health insurance and employers struggle to stay in business, insurance executives are giving themselves "huge raises," according to Ethan Rome, executive director of Health Care for America Now (HCAN), a coalition of advocacy groups that released a report about the situation. The CEOs of Cigna, Humana, UnitedHealth Group and Wellpoint each effectively got raises in 2009. H. Edward Hanway, the former CEO of Cigna, was the highest paid, with a retirement package worth $110.9 million. During the first half of 2010, health insurers' profits jumped more than 20 percent. Aetna's income jumped more than 40% in the second quarter of 2010, compared to a year earlier. Despite making record profits, the companies continue to hike their premiums between 15 and 29 percent. Industry officials claim the rate hikes are necessary due to rising medical costs. Only one company responded to questions about executive compensation rates, though. A Wellpoint spokeswoman explained that executive compensation rates reflect CEO's efforts to improve care and hit corporate goals.