Democratic investigators target health insurers

[Parkbandit]

House Democrats are probing the nation’s largest insurance companies for lavish spending, demanding reams of compensation data and schedules of retreats and conferences.


Letters sent to 52 insurance companies by Democratic leaders demand extensive documents for an examination of ‘extensive compensation and other business practices in the health insurance industry.” The letters set a deadline of Sept. 14 for the documents.


Rep. Henry Waxman (D-Calif.), chairman of the House Energy and Commerce Committee, and Rep. Bart Stupak (D-Mich.), chairman of the Subcommittee on Oversight and Investigations, signed the three-page letter dated Monday.


An industry source replied when asked for comment: “This is nothing more than a taxpayer-funded fishing expedition designed to silence health plans."


By Sept. 4, the firms are supposed to supply detailed compensation data for board members and top executives, as well as a “table listing all conferences, retreats, or other events held outside company facilities from January 1, 2007, to the present that were paid for, reimbursed, or subsidized in whole or in part by your company.”


For employees or officers making $500,000 or more, the committee wants information on salary, bonus, options and pension.


And by Sept. 14, the firms are supposed to provide copies of reports from compensation consultants, plus board drafts of compensation plans, and information about market share.


Read more: http://www.politico.com/news/stories/0809/26251.html#ixzz0OdwXJwfn

What the fuck? I can't believe shit like this is happening in the USA.

It's painfully obvious they want to turn public opinion around by painting Big Insurance with the same brush as they painted Big Oil, in hopes to secure the power they desire by controlling healthcare.

[AnticorRifling]

Yeah I don't think this is any of their business.

[Parkbandit]

Yeah I don't think this is any of their business.

No shit. That would be like me going next door to my neighbor and demanding to know how much he made and his benefit package.. because he has a nicer pool than I do.

WTF!

If I was the CEO of one of these insurance companies, I would tell them to fuck off and fight it all the way through the courts. Granted, someone like Barney Frank would get up and say "LOOK! THEY ARE HIDING THEIR OBSCENE PROFITS FROM THE AMERICANS THAT PAY THEM!!"

[Tolwynn]

I don't think it's an entirely bad idea - so long as all existing and future government personnel and programs are subjected to equally rigorous standards and investigation.

[radamanthys]

I don't think it's an entirely bad idea - so long as all existing and future government personnel and programs are subjected to equally rigorous standards and investigation.

This is the same administration buying 5 luxury jets.

This is an entirely bad, as well as corrupt, idea. We have a concept of 'private' for a reason. See my sig.

[Parkbandit]

I don't think it's an entirely bad idea - so long as all existing and future government personnel and programs are subjected to equally rigorous standards and investigation.

The government has NO business demanding any such records that aren't already part of the general reporting for taxes.

If they can do this to insurance companies, they can do it to any company they need to make look bad in the public's eye.

[Tolwynn]

Of course it's a terrible idea - especially considering the excesses of the body demanding such investigations. I just think it would be very interesting to see what the responses would be if suggestions were made that any segment of the government should be held similarly accountable and responsible. Good luck with that ever happening, though.

[Celephais]

I think it's bad to do this to a private company... i think it should be mandatory for government branchs (well... at least public service ones, not defense or national security type stuff)

[Daniel]

Of course it's a terrible idea - especially considering the excesses of the body demanding such investigations. I just think it would be very interesting to see what the responses would be if suggestions were made that any segment of the government should be held similarly accountable and responsible. Good luck with that ever happening, though.

You obviously aren't familiar with OMB and GAO.

People in the Gov get reprimanded for putting personal expenses as little as 20 bucks on their gov travel card.


In any event, for the OP I'm curious as to what justification they are using to request this information other than they want it.

[ClydeR]

The are only four times when Congress should be able to investigate or regulate the compensation practices of privately owned insurance companies. First, if the companies are nonprofit. Second, if the government is subsidizing the operations of the companies. Third, if the companies are publicly traded and there is an issue of compliance with the securities laws. Or finally, if there is a reasonable basis to suspect fraud relating to executive compensation and that fraud has an adverse effect on the general public.

A few insurance companies fit into the first nonprofit group, but not nearly all of them.

So says Clyde.

[radamanthys]

You obviously aren't familiar with OMB and GAO.

People in the Gov get reprimanded for putting personal expenses as little as 20 bucks on their gov travel card.


In any event, for the OP I'm curious as to what justification they are using to request this information other than they want it.

Government waste does not exist. Nobody in government is bad.


I think your mother ate way too much government cheese while you were in the womb.

[radamanthys]

The are only four times when Congress should be able to investigate or regulate the compensation practices of privately owned insurance companies. First, if the companies are nonprofit. Second, if the government is subsidizing the operations of the companies. Third, if the companies are publicly traded and there is an issue of compliance with the securities laws. Or finally, if there is a reasonable basis to suspect fraud relating to executive compensation and that fraud has an adverse effect on the general public.

A few insurance companies fit into the first nonprofit group, but not nearly all of them.

So says Clyde.

How is executive compensation fraud, even if excessive?

[AnticorRifling]

Government waste does not exist. Nobody in government is bad.


I think your mother ate way too much government cheese while you were in the womb. Does that mean your mother was on a liquid diet of douche?

[Tolwynn]

You obviously aren't familiar with OMB and GAO.

People in the Gov get reprimanded for putting personal expenses as little as 20 bucks on their gov travel card.

And as well as that may be, ~$100M was spent on those same cards on airfare that was never used. Guess those controls are really doing the trick there.

[Daniel]

And as well as that may be, ~$100M was spent on those same cards on airfare that was never used. Guess those controls are really doing the trick there.

You know this, I'm assuming, because it was found in a report. The point being that Government employees are routinely asked to account for what they do and what they spend their money on.

That doesn't mean there isn't government waste or abuse it's just kinda ridiculous to say that gov employees aren't asked to do the same things.

[Daniel]

Government waste does not exist. Nobody in government is bad.


.


Is that what I said? No. So please shut the fuck up. Hyperbole and outright infactual statements do not help you case in either case.

[AnticorRifling]

I might be a dork but everytime I see hyperbole I think damn that bole is fast. I hate myself sometimes.

[Parkbandit]

You obviously aren't familiar with OMB and GAO.

People in the Gov get reprimanded for putting personal expenses as little as 20 bucks on their gov travel card.

I imagine this is for the "peons" of the Government.. once you get higher up, that type of scrutiny doesn't occur nearly as often.



In any event, for the OP I'm curious as to what justification they are using to request this information other than they want it.

If I know Obama and Rahm.. they are just demanding this information because they want it.

Don't fuck with Chicago style politicians..

[Daniel]

I imagine this is for the "peons" of the Government.. once you get higher up, that type of scrutiny doesn't occur nearly as often.


I guess it depends on what you mean by "higher up" Guarantee anyone in a "Pay scale" is heavily scrutinized for a lot of stuff that, frankly, private citizens don't and wouldn't want to deal with.

For assclowns: That doesn't mean that people can't and don't abuse the system but there are a lot of things in place, with varying degrees of effectiveness, to prevent it.




If I know Obama and Rahm.. they are just demanding this information because they want it.

Don't fuck with Chicago style politicians..

I'd be interested to know if this is the case (the wanting part). This seems to be a pretty silly (or stupid) request if that is the case.

[Parkbandit]

I guess it depends on what you mean by "higher up" Guarantee anyone in a "Pay scale" is heavily scrutinized for a lot of stuff that, frankly, private citizens don't and wouldn't want to deal with.

For assclowns: That doesn't mean that people can't and don't abuse the system but there are a lot of things in place, with varying degrees of effectiveness, to prevent it.

The same thing happens in the private sector.. regional managers are scrutinized by area managers who are scrutinized by area directors who are scrutinized by vice presidents, etc...



I'd be interested to know if this is the case (the wanting part). This seems to be a pretty silly (or stupid) request if that is the case.

You do realize they would never admit to that, right? Clearly they want the information to show how evil insurance companies are.. but they will do it under the guise of "We need it to determine how much this new healthcare program will cost and how we can save you money, because we love everyone"

[Daniel]

You do realize they would never admit to that, right? Clearly they want the information to show how evil insurance companies are.. but they will do it under the guise of "We need it to determine how much this new healthcare program will cost and how we can save you money, because we love everyone"

Yea. I'm just having a hard time grasping why they would so overtly ask for it. You'd imagine they'd drum up some information on the low and then use it.

[radamanthys]

Does that mean your mother was on a liquid diet of douche?

Lol, maybe. My dad is kinda a douche.

[Parkbandit]

Yea. I'm just having a hard time grasping why they would so overtly ask for it. You'd imagine they'd drum up some information on the low and then use it.

I think your Kool-aid is wearing off. :)

They have a super majority in Congress and a popular liberal President.. their arrogance is at an all time high. Who's going to tell them no?

[Mabus]

Clearly they want the information to show how evil insurance companies are.. but they will do it under the guise of "We need it to determine how much this new healthcare program will cost and how we can save you money, because we love everyone"
I would expect the insurance industry to comply, take some public outrage, and then quietly stalk off to count the billions in new revenue from a program they helped design.

They are already going to spend millions to support the changes.

That some people would fall for this ruse (an unpleasant distraction) with the belief that things will change to benefit the consumer is laughable.

[ClydeR]

How is executive compensation fraud, even if excessive?

Executive compensation is often tied to objective measures, like earnings or stock price. The link between compensation and objective measures creates and incentive for fraudulent manipulation of those objective measures. Executives might lie about earnings. In addition to increasing their compensation, the lie may also induce pension funds to invest in the company and banks to lend to the company, based on an assumption that the company is more profitable than it actually is.

When fraud has a widespread impact, beyond the mere issue of how much the executive is paid, it is a legitimate issue for Congressional investigation. But if it's just the issue of how much a particular executive is paid, or even all of the executives at a single company, then Congress should let prosecutors and the invisible hand do the regulating.

I haven't heard anybody suggest that there has been any fraud in insurance company compensation.

[ClydeR]

I might be a dork but everytime I see hyperbole I think damn that bole is fast. I hate myself sometimes.

I don't get it.

[Parkbandit]

I don't get it.

Probably in more than one way.

[ClydeR]

Probably in more than one way.

I wish I were as clever as PB. How, oh how, does he think up such cool things to say?

[Kembal]

If I remember correctly, insurance companies have some sort of weird antitrust exemption due to the fact that they are regulated by the states, and thus are subject to having to comply with Congress' demands for oversight information, lest Congress go kick their ass and take away the exemption.

Baseball has the same problem. (see: steroids hearings)