On Mar 1, 2010, at 11:58 AM, Fred Holmes wrote:
Let's do [some of] the math on this one. The other day the CEO of one of the health insurers said before Congress that she received $10M in compensation, something like $1M in salary and $9M in stock options. More or less. Well if it's a major medical insurer, surely it has 10 million policyholders in a country of 300 million citizens. So it cost about $1 per policyholder to pay the CEO compensation package? Even if it were $10, that's not much. And if the CEO makes the organization of that size work well, I would think that she's worth it. Huge enterprises are very difficult to make work well. So the government wants to trade in ten(? or more) insurance companies for one huge organization that covers everybody, and pay the CEO of that how much?
Bad math. Government run heath care (here and abroad) has overhead of around 3%. Private insurance companies in the US have overhead of around 30%. That difference is 27% of total premiums. Quite a big chunk of change.
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