FACTS DON’T SUPPORT OPINION

From an article by journalist Caroline Baum.

Insurance Companies

Garnering support for health-insurance reform by demonizing insurance companies is a cheap shot, albeit one that resonates with the public. After all, these are the faceless bureaucrats who deny or pay claims in a seemingly arbitrary manner and refuse or cancel coverage if you cost them too much money.

Stubborn Facts

Facts are stubborn things, this White House is quick to remind us. And in this case, the facts don’t support the vilification.

If insurance companies were gouging the public, the evidence would show up in one of two places, according to Graef Crystal, a compensation expert in Santa Rosa, California, and occasional Bloomberg News columnist: excessive executive pay or excessive returns to shareholders.

His analysis of five major health insurers shows just the opposite: below-market pay and below-market shareholder returns.

“There’s no case here for undue enrichment of shareholders” or over-compensating CEOs, Crystal finds.

Health care needs a major overhaul, but that’s no reason to make scapegoats out of insurance companies.

Scroll to Top