As we work the issue of health care it is absolutely necessary to look at reforming the health insurance industry.
Small businesses and individuals face 10 to 15 percent yearly increases in insurance premiums and we are told, among other things, that the cost of health care is increasing and malpractice suits are driving up the costs. The facts prove otherwise.
One of the largest health care companies in the U.S. is Aetna. In 2000 Aetna made $127.7 million in net profits. That is after expenses. By 2007 Aetna made $1.34 billion in net profits. In 2007 it paid its CEO, Ronald Williams, $23 million in salary and stock options. (I have offered to do it for half that but no one has contacted me).
Here is the question: If health care and litigation costs are so expensive, how can Aetna explain a net profit increase of 1340.6 percent in seven years?
An old capitalist saying goes "risk-takers are profit-makers." It looks like we are taking the risk and the health companies are taking the profits. It is time we reign them in as part of health care reform.
