Friday, December 4, 2009

They Started With Wall Street Salaries and Now Are Moving to Health Insurance Company Salaries

The Democrats now want to target health insurance executive salaries. This isn't too surprising since they are already targeting their profit margins (the house bill doesn't allow MLR's below 85%, i.e. limits profit margins to under 15%) and regulates their ability to increase premiums. Though it's still wrong:

Senate Democrats will offer an amendment this weekend to curb the pay of executives at health insurance companies that benefit from federal subsidies, fueling the growing feud with the powerful industry.

Sens. Blanche Lincoln (D-Ark.), Frank Lautenberg (D-N.J.) and Robert Menendez (D-N.J.) have sponsored an amendment that would prohibit health insurance companies from deducting more than $400,000 in executive compensation per individual. The cap would apply to companies that earned 25 percent or more of their income from Americans who buy insurance from government-created exchanges.

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