On a recent visit to a local orthopedic center I saw a notice posted on the walls of the reception and examining rooms. This notice asserted that the reason one has trouble getting his health insurance to cover procedures is because of the huge CEO salaries of those companies. The notice then listed the CEO’s compensation of the largest insurance companies. Using their data, the CEO of my employer’s health insurance company, Cigna, was $2.5 million. Wow that is a lot but it is only 0.013% of the $19 billion dollar annual revenue of that company. If you contrast that percentage to that of Boulder Community Hospital’s CEO, David Gehant, you will find his $1M+ salary is a whopping 0.4% of their $250M revenue. That is 40 cents for every $100 of your hospital bill and is over 30 times the percentage of Cigna! Remember Boulder Community is a nonprofit. If fact I would challenge any Boulder based charity to claim a lower percentage of their CEO’s compensation to revenue than that of health insurance companies. The only conclusion when presented with these numbers is that CEO’s salaries are not germane in the discussion of health cost reform. So the next time you hear someone (like Rep. Polis) complain about CEO salaries, know that they are not presenting an honest argument.
Jonathan Sawyer
Boulder
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