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Janet Kinosian

Janet Kinosian

Posted: February 27, 2010 12:50 PM

Ms. WellPoint CEO: How Much Is Enough?

What's Your Reaction:

Why was I shocked when I saw two women sitting in front of Congress yesterday: one, Angela F. Braly, the Chief Executive of WellPoint and the other, Cynthia Miller, the company's chief actuary?

Each of them had pixie haircuts and innocent, even smarmy looks on their faces with Ms. Braly and Ms. Miller scripted in huge bold black letters on name cards in from of them - a deference, if you will, to the feminist movement that placed them there.

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Braly's WellPoint, which owns Anthem Blue Cross, California's largest health insurer (and also mine for 25 years) is hiking premium rates on 800,000 individually insured members up to 39%. (My rate is set to rise 39% May 1 after a 10% hike last November.) Anthem had hoped to have these rate hikes in place by March 1 but consumer and legislative anger and push-back have delayed their hoped-for profits.

Each of the women defended their well-scripted corporate play card: such strident hikes were necessary to counter rising medical costs and an exodus of younger and healthier policy holders. (Wonder why ladies? No one can afford them?) And besides, California Insurance Commisioner Steve Poizner had not objected.

Well, there you go; a defense of making extra billions in profits on the lives of the trapped insured if I've ever heard one.

The very same week Anthem informed their insured via letter of the massive rate hikes, CEO Braly's company posted a $2.7 billion fourth quarter profit. The Los Angeles Times quoted the WellPoint executives as claiming their profits "were modest."

Maybe we can get the Obama administration to alter its so successful Yes We Can campaign phrase for the health care debate and blast it over the air-waves: How much is enough?

It's not that I enjoy seeing the traditional cabal of corporate heads, generally white, middle-aged and not-too-good-looking men, suited up and called before Congress to get bashed: Tabacco giants, auto-makers, bankers, all looking as if each knows their hand is in the billion dollar candy jar and they just got caught, and if they sit there a while and get shouted at they can go back to their unregulated, well-lobbied candy-jar operations.

But this time, it is women. Women who have these positions because other women were beaten and starved in jail to gain the right to vote; women who took decades to shout and legislate and educate the public that women should have equal rights to men.

So in the same year Hillary Clinton almost made it to the White House, WellPoint CEO and former Anthem legal counsel Angela Braly was making $1.1 million a year in salary along with $8.5 million in valued stock compensation.

She was apparently unconcerned that millions of Californians cannot afford her company's health care premiums and even those who can, still pay for most of their health care needs themselves because her company's deductibles are astronomical.

So what is her company's greedful logic? Let's raise them again!

The LA Times also reported that documents obtained by congressional investigators showed this same year that the company Braly heads paid 39 company executives $1 million or more and spent more than $27 million for 103 executive retreats in 2007 and 2008 -- and that some retreats were even attended by insurance agents and brokers.

We've come a long way, baby? Not by a long shot.

Of course, this is all the more horrific since Braly heads a company that brokers in human lives.

My cousin, 62, died 8 weeks ago because another health insurance giant delayed telling him that he needed a heart transplant for years. The week he died was the same week they informed him of this fact. I sat and heard my aunt, his 90 year old mother, cry and repeat over and over, "That insurance company killed my boy for money."

After all the obscene profiteering, I guess it comes down to this: You're a mother, Ms. Braly. So I ask you, How much is enough?

Janet Kinosian is a 25-year print journalist who has written for the Los Angeles Times, Los Angeles Times Syndicate, The New York Times Syndicate , Reader's Digest and People Magazine. She provides Media Consulting at www.janetkinosian.com.


 

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10:58 AM on 03/06/2010
Excellent comments on health care CEOs who care so much, especially about their enormous salaries and perks.

Also just read your very informative column Witness to Fire. My father was also one of those who witnessed the fire.
schatsie
banks are more dangerous than standing armies
10:39 PM on 03/01/2010
Death Panels --- Wellpoint and Co Conspirators....
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HUFFPOST PUNDIT
Lorianne
ama vitam
03:09 PM on 03/01/2010
The biggest fear Big Insurance has is competition.
That's why they've made sure that competition is OUT of any overhual plans in Congress.

Obama made a big deal about competition in many speeches.
But when it comes down to the wire, Congress will emphatically NOT do anything to allow competition in the insurance market.

And neither will your State legislatures ... which is why we have the State sponsored health insurance monopolies we have today.

In short, Federal or State governments are never going to allow real competition in the insurance market. NEVER.

The only way to get competition is to boycott them until they get the message.
WE create the competition.
If they want our business, they will capitulate on price/coverage.
If they do not want our business, we're better off paying for care out of pocket.
This user has chosen to opt out of the Badges program
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Hoosierbrad
I know it when I see it.
02:07 PM on 03/01/2010
Ms. Kinosian, your points are well taken, but you forget something; the President of Wellpoint is doing what she is supposed to do in a capitalistic economy - maximize the profits for her company's shareholders. The real question we should be asking as a society is whether we should allow capitalism in our health care system! Wellpoint, before it became a for-profit corporation in the 1990s, was made up of non-profit insurance companies (Blue Cross and Blue Shield) in the various states. Why shouldn't all health insurance be non-profit!
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Janet Kinosian
02:18 PM on 03/01/2010
yes, this is so right. Blue Cross was a better company when it was non-profit. much. and, letting this same capitalism run the political system that supports it with laws, of course, is bizarre to begin with. who knows where this new Supreme Court decision will take us?
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HUFFPOST BLOGGER
Janet Kinosian
02:27 PM on 03/01/2010
Maybe what we need are some new real non-profits set up so people can have a choice and then dump/boycott the now pro-profit giants out of business. I know this was being discussed as competition in the marketplace ; what happend to this idea?
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HUFFPOST PUNDIT
Lorianne
ama vitam
03:07 PM on 03/01/2010
The biggest fear Big Insurance has is competition.
That's why they've made sure that competition is OUT of any overhual plans in Congress.

Obama made a big deal about competition in many speeches.
But when it comes down to the wire, Congress will emphatically NOT do anything to allow competition in thei insurance market.

And neither will your State legislatures ... which is why we have the State sponsored health insurance monopolies we have today.

In short, Federal or State governments are never going to allow real competition in the insurance market. NEVER.

The only way to get competition is to boycott them until they get the message.
WE create the competition.
If they want our business, they will capitulate on price/coverage.
If they do not want our business, we're better off paying for care out of pocket.
HUFFPOST PUNDIT
lightningbolt
11:25 AM on 03/01/2010
The only way to stop the health insurance death machines is by force.
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lightningbolt
11:24 AM on 03/01/2010
Because health insurance companies are killing people for money and our government isn't doing anything about it, I think it gives the people the right to organize a mob, take over their offices, and totally disrupt their business and arrest the murderers that lead them. We must do it by force because the government is an accomplice to these crimes and refuses to enforce the law.
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Lorianne
ama vitam
01:38 PM on 03/01/2010
So violent, and unneccessary.

Boycott them.

Seriously. Arianna has the MOVE YOUR MONEY campaign but she never suggests people just boycott the insurnace companies.

Stop paying the premiums.
Hit them where it hurts ($$$$).
Trashing their offices would mean nothing to them.
They'll just jack up premiums to cover the damage.
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Janet Kinosian
02:31 PM on 03/01/2010
I'd boycott in a minute, but for the issue of where to go for health care if one really got seriously ill. One of the reasons/excuses they've given Congress for these astronomical hikes is that because so many young healthy people are leaving them [essentially boycotting them] they have to hike up these premiums on the rest of us. an excuse, of course, but whoever bean-counts the numbers has figured out a way to make the numbers work in the individual policy category to get it past the insurance commisioner the first time. boycotting them would be wonderful, but I guess we'd need a whole slew of non-profits/medical personnel to take care of people who were sick until a new system arose.
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lightningbolt
02:43 PM on 03/01/2010
I can't boycott them. My employer decides who my health insurance provider is. I have no power to change that other than quitting my job. I can refuse coverage, but I don't get an increase in salary to compensate so I can go buy my own insurance. The other problem is that the health insurance industry has an anti-trust exemption, which means that no matter who you buy your insurance from, you will get outrageously ripped off.
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HUFFPOST SUPER USER
blueken
Finger Picking blues man
10:47 AM on 03/01/2010
This is just the opening shot across the bow. Next comes those employer based contracts that everyone is so happy with. What is your employer going to do when the new contract is 25% to 40% more than last year? Pick one. Deduct more from your pay, or eliminate your job?
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den1953
The best politicians are for free!
10:10 AM on 03/01/2010
Price yourself right out of business brilliant!
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Lorianne
ama vitam
03:01 PM on 03/01/2010
We should expedite the process.
Boycott them.
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HST
Conservatism = selfishness
07:06 PM on 02/28/2010
The people on this thread who defend insurance companies are funny especially when they claim some aspect of the author's story is untrue as if that will convince people that the insurance companies really don't care about their fat profits and keep their focus on the customer's healthcare.
I'd like to boycott these companies, but with their ant-trust exemption or if someone has a pre exisisting condition the consumer really doesn't have a choice. Whatever happened to the republicants' belief in "free market competition"?
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HUFFPOST PUNDIT
Lorianne
ama vitam
03:02 PM on 03/01/2010
Boycott all of them.
It's the only way we'll get true 'change'.
Congress is NOT going to do it (no matter who is in charge).
06:40 PM on 02/28/2010
Greetings Janet and Citizens:

Other Peoples Money-Why Unhealthy People Mooch Off The Ones Who Live Their Lives Responsibly

American people have become accostomed to live unhealthy lifestyle and expect the medical profession to have a qucik high tech fix or a resolution with some expensive drug that was cooked in a labratory for their symptoms of poor life choices or being part of a blood line that carries a genetic predisposition. What ever the reason for their poor health- it is other peoples money that usually pays for the medical expense. Why should other people pay for someones poor life choices or their misfortune in being part of a bloodline that has a poor health history.

If you feel so compelled to minimize the cost of health insurance to the those addicted to sugar, fatty foods, alcohol, drugs, risky behavior or just plain stupidity, then why dont you organize a group to provide either health education as part of a health improvement program or provide payment for their increased health care premiums.....and just quit picking on companies that take the risks with Americans who are clueless in how to help themselves...

Warm regards,

Michael Winters
05:46 AM on 03/01/2010
I'm guessing you are not a healthcare professional. Because your supposition that there is a basic dichotomy for disease/illness based on causation; poor life choices or "bad" genes is pure nonsense (infectious disease, most forms of cancer??). To extrapolate your pretzel logic is to say responsible people do not get ill. This sounds pretty silly doesn't it? So does your entire post.
09:36 PM on 03/02/2010
Greetings Diogeneslives...

Thank you for your feedback....I do not need to be a health care worker to know that cancer is caused by continuous and harmful exposure to subsances in the enviroment-either by a person's ignorance or poor education. (Please read Daniel Golman's Book Enviromental Intelligence). As for infectiouds disease any competent health care professional will tell you that most of the time the person with the disease did not take proper precautions to protect themself from exposure...Bottom line when people take more responsibility for theirown wellness by taking preventative measures rather than leaving it up to the healthcare worker to fix it after there is a problem; maybe healthcare insurance would be less costly for everyone....

Warm regards,

Michael Winters
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Lorianne
ama vitam
05:24 PM on 02/28/2010
Boycott them.

Seriously. Arianna has the MOVE YOUR MONEY campaign but she never suggests people just boycott the insurnace companies.

Stop paying the premiums

Why not?
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Janet Kinosian
11:43 PM on 02/28/2010
Boycott? Fat-Sugar-addicted folks causing the issues? Insurance Companies not telling doctors who work for them inside their HMO's how to practice medicine [all the while giving bonus' to doctor's who keep their costs down to pre-determined levels] - you are kidding I hope?

Until you have no health care except what these companies try to bleed you with [and everyone is just a job loss away from it] perhaps you won't see the crisis for what it is. It's life and not what company to buy soda from. In my opinion, it's a disgrace that this great country is left with this abhorent mess of a health care system.

Health Insurance companies should be banned - who needs them? They just siphon off billions from the health system. But at this point, how would it be managed without them?
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Lorianne
ama vitam
01:35 PM on 03/01/2010
It's the only way to get rid of them.
Congress is not going to do it.
05:17 PM on 02/28/2010
My cousin, 62, died 8 weeks ago because another health insurance giant delayed telling him that he needed a heart transplant for years. The week he died was the same week they informed him of this fact. I sat and heard my aunt, his 90 year old mother, cry and repeat over and over, "That insurance company killed my boy for money."

What a crock, insurance companies don't tell you anything about your health, your doctor does.

Just like climate change and polar bears. Truth out the window, the ends justify the means.
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Lorianne
ama vitam
05:25 PM on 02/28/2010
Why is a health insurance company responsible for telling someoen they need a heart tranplant?
Shouldn't that be a doctor telling them that?
01:13 AM on 03/01/2010
You obviously have not tried to get a heart transplant through health insurance. You are ignorant of the facts and process. Sit down.
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JDM73
male, 38, writer/draughtsman/ex-musician
05:14 PM on 02/28/2010
Sadly, a lot of people still don't believe that doctors--because of health insurance companies--and insurance companies themselves routinely delay diagnoses and life-saving medical procedures. I talk to people like that all the time: good but naive folk who just can't accept the fact that doctors and insurers have something other than the American people's best interests at heart.
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05:14 PM on 02/28/2010
As a woman, I've always lived in a fantasy world where - if women could gain power - they would use it wisely and compassionately. This pair has me changing my tune. Our 1960's bra burnings resulted in this??
05:09 PM on 02/28/2010
You might want to ask your state Insurance Commissioner. He approved it.