Insurance Execs' Pay in Crosshairs

Democrats in Congress aren't out of bullets to use against the insurance industry.

Reps. Henry Waxman and Bart Stupak sent letters to CEOs of more than 50 of the nation's top health insurers asking for five years of detailed financial information for every company employee or officer making more than $500,000 a year.

In addition to salary and bonus, the Democrats want to know about stock and option awards, incentives, retirement plans, and all other compensation.

And they're telling the execs to do it in a hurry, giving them until September 4 for some of the information and a final deadline of September 14, according to a letter obtained by the Wall Street Journal. That's timed for the lawmakers' return to Washington after the August recess. Undoubtedly, the move is aimed at embarrassing execs as Democrats try to show insurers are the cause for high health care costs.

"The Committe on Energy and Commerce is examining executive compensation and other business practices in the health insurance industry," the letter begins. It's signed by committee chairman Waxman and Stupak, who heads the subcommittee on oversight and investigations.

Insurers are a primary target of criticism for the Democrats. While the drug and hospital industries made pacts with the White House on health reform, the insurance lobby has no such agreement. From President Obama and Democrats in Congress to various special interests, the insurers have been made out to be one of the bad guys in the current debate.

“This is just a fishing expedition designed to silence the health insurance industry and distract attention away from the fact that the American people are rejecting a government-run plan,” said Robert Zirkelbach a spokesman for the trade group America's Health Insurance Plans.

Democrats are likely to make hay of some large 2008 compensation packages. Aetna Inc. CEO Ronald Williams made $24.3 million last year, securities filings show. Cigna Corp. CEO H. Edward Hanway made $12.2 million and Wellpoint Inc. chief Angela Braly's compensation was $9.8 million.

After rallying earlier this week, stocks of some big insurers—all of which are in Waxman and Stupak's sites—dropped. Shares of Aetna, Cigna, Humana Inc. and Wellpoint all fell Wednesday.