According to Forbes magazine the highest paid CEO in the country isn’t from the tech, oil or banking industries. No, the highest paid CEO is Stephen J. Hemsley from UnitedHealth Group.
Health insurance providers like UnitedHealth, Aetna and Cigna have posted record profits for the last three years, in spite of their objections that the Affordable Care Act, also called ‘Obamacare’, would destroy the private insurance industry.
The insurers state that their rise in profits comes from the lack of doctor’s visits early in the year which they attribute to inclement weather. Less doctor’s office visits yield less claims. Medical experts say the reduction in claims comes from the frugality of people seeking medical attention who have become more cost conscious and are opting to wait for treatment.
Wendell Potter, who used to be an insurance industry executive, but is now an industry watchdog, has a different explanation. According to Potter, “They’ve been able to do that so far this year, despite the new health care reform law, by forcing policyholders into plans that force them to spend more from their own pockets before their policy kicks in. Insurance providers also fatten their bottom lines by denying more claims.”
In the US, half of all the bankruptcy case filed by bankruptcy attorneys is by people who cite medical costs as their reason for their dire financial situation. Many of these medical bankruptcy filers have health insurance. When aided by a bankruptcy lawyer, these individuals can have their debts reduced or eliminated, depending on their circumstances.
