Connecticut Attorney General Richard Blumenthal says the state’s Insurance Department should scrutinize the pay of top insurance executives when companies ask for rate increases. As WNPR’s Harriet Jones reports, the call was prompted by a multi million dollar payout to the CEO of United Health Group.
Late last year, United Health bought the rights to thousands of Health Net policies in Connecticut. The state’s insurance department approved a 19% rate hike for those plans as they come up for renewal. This month, in an SEC filing, it was revealed that United Health’s CEO Stephen Hemsley received total compensation in 2009 of $102 million – up tenfold from a less than $10 million package in 2008.
Richard Blumenthal has written to Connecticut’s Insurance Commissioner Thomas Sullivan, calling the rate increases stupefying, in the light of the lavish sums paid to the CEO. He wants the department to consider whether rate increases requested by companies are reasonable when they give approval. Sullivan says rate increases are considered on an actuarial basis.
For WNPR, I'm Harriet Jones.