An embarassment of riches
The Country Doc has a way to cut health care costs:
AHIP [America’s Health Insurance Plans] recommends that 30% of health care costs be cut over a five year period. No recommendations on which of these costs will be cut, but a new public-private advisory group is going to figure out where to trim the fat. Perhaps they could start with AHIP’s CEO’s salaries.
(According to Forbes.com last year Cigna CEO H. Edward Hanway’s total compensation package was $30.16 million, Coventry Health Care’s Dale Wolk $20.86 million, Humana’s Michael McCallister $20.06 million, and so on).
How much is $30.16 million dollars a year? Assuming a workaholic 10 hour a day, six day a week work schedule with two weeks vacation — about 3000 work hours a year — that comes out to $10,053 an hour. Since a typical primary care office visit costs about $60, that’s about 502,666 visits to a family doctor. Or 241,280 screening mammograms assuming an average cost of $125 per mammogram. Just one hour of this fellow’s compensation would buy a month’s supply of a generic $4 antilipid or antihypertensive drug from Wal Mart for 2,513 patients.
Speaking of generics, couldn’t a “generic” CEO (i.e. a recently minted MBA from a midwestern college) save these health insurance companies a lot of money?