New Report Shows HMO Executives Receive Huge CompensationWashington, DC - A new report issued by a consumer health organization shows that top HMO executives are receiving huge compensation packages. The report, issued by Families USA, documents that the top HMO executive received more than $54 million in compensation in 2000 and had $358 million in unexercised stock options.
The report comes at a time when the managed care industry is fighting patient protection legislation with claims that the costs of such protections are too expensive. The report was released to coincide with the beginning of Senate debate on a patients' rights bill introduced by Senators John McCain, John Edwards, and Edward Kennedy.
The highest paid executive in the industry in 2000 was William W. McGuire, CEO of UnitedHealth Group Corporation. According to the Families USA report, top-level executives of major managed care companies - including Aetna, CIGNA, Oxford Health, and WellPoint Health Networks - received multi-million dollar compensation packages and held unexercised stock options in the dozens of millions of dollars.
"While the managed care industry decries the pennies needed for important patient protections, it is glad-handing many millions of dollars into the pockets of its top executives," said Ron Pollack, Families USA's executive director. "Clearly, the industry has a double standard about costs - a very generous standard for its executives and a miserly one for America's consumers and patients."
The report shows that the top-five managed care executives received the following compensation in 2000, exclusive of unexercised stock options:
William McGuire (CEO of UnitedHealth Group): $54.1 million
Wilson Taylor (Retired Chairman, CIGNA): $24.7 million
Ronald Williams (Executive Vice President, WellPoint): $13.2 million
William Donaldson (Chairman, Aetna): $12.7 million
Leonard Schaeffer (Chairman and CEO, WellPoint): $11.1 million
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