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🩺 Insurance CEOs Compensation

Author

Miles Beaudoin
May 01, 2023

Good morning. This is Scrubs - the healthcare newsletter that gives you the same feeling as when you’d hear that catchy jingle of an ice cream truck pulling into your cul-de-sac. The SpongeBob popsicle is my go-to.

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Here is your agenda:

  • 💵 Insurance CEOs Compensation

  • 📈 Walmart Health is Growing - FAST

  • 🧠 On this Day

  • 📚 Interesting Reads

  • 🚿 Shower Thoughts

💵 Insurance CEOs Compensation

These six CEOs collectively made $114.5 million in 2022. Here is who they are and where they work.

Fierce Healthcare dug through SEC filings to find which healthcare insurance CEOs made the most money in 2022. Here is the findings.

But first, let me explain a ration you will see. CEO pay ratio is the ratio of how much the CEO makes, compared to the median salary at their company.

  1. Karen Lynch, CVS Health

    • Compensation: $21,317,055

    • CEO pay ratio: 380:1

      • In other words, in 2022, Lynch made 380x the average salary at CVS Health

      • It was Lynch’s first full year as CEO of CVS Health

  2. David Cordani, Cigna Group

    • Compensation: $20,965,504

    • CEO pay ratio: 277:1

  3. Gail Boudreaux, Elevance Health

    • Compensation: $20,931,081

    • CEO pay ratio: 383:1

    • Company changed its name from Anthem to Elevance (a combo of “elevate” and “advance”)

  4. Andrew Witty, UnitedHealth Group

    • Compensation: $20,865,106

    • CEO pay ratio: 331:1

    • UnitedHealth Group is much more profitable than its peers

  5. Bruce Broussard, Humana

    • Compensation: $17,198,844

    • CEO pay ratio: 238:1

  6. Sarah London, Centene

    • Compensation: $13,246,447

    • CEO pay ratio: 171:1

    • London became CEO of Centene in March 2022

Currently, women are CEOs at roughly 8.5% of publicly traded companies. And, according to this list, women CEOs are becoming more common in health insurance. Making up 50% of the top earning health insurance CEOs, and representing three of the biggest companies in the insurance world.

📈 Walmart Health is Growing - FAST

Walmart Health is expanding with plans to open four Walmart Health centers in Oklahoma City next year.

The move marks the company's first entry into the Sooner State and is part of a push to offer affordable primary care to more underserved areas. Walmart Health has already expanded into several states, including Georgia, Florida, and Texas, and has plans to open more than 75 locations by 2024.

But, what is Walmart Health?

Walmart Health centers offer a range of medical services, from primary care to urgent care, labs, behavioral care, and dental visits, at prices that Walmart claims are way cheaper than traditional healthcare options. Typically, the centers are located next to, or within, Walmart Supercenters and are aimed at patients with little or no insurance coverage.

Walmart is one of several retail giants looking to expand into the primary care space. CVS and Walgreens are also ramping up their healthcare offerings. According to consultancy firm Bain, as much as 30% of the primary care market could belong to nontraditional players by 2030.

In other words, big companies (like Walmart) and private equity are taking market share from private practices and hospitals.

🧠 On this Day (May 1st)

  • In 1707, England and Scotland united to form the United Kingdom of Great Britain

  • In 1840, Great Britain created the first adhesive postage stamp; it was called “Penny Black”

  • In 1886, the US general strike began for 8-hour work days

  • In 1931, the Empire State Building opened in New York City

📚 Interesting Reads

🚿 Shower Thoughts

  • The syllables in “on your mark, get set, go” are a countdown. Source

  • As a kid, teenagers seemed so big and scary because in most TV shows they were actually played by adults in their 20s. Source

  • On a galactic scale, amber and pearl are far rarer than gold and diamonds because they require life. Source

  • Both concrete and glass are mostly made of sand which makes skyscrapers just really tall sandcastles. Source

😆 Funnybone

That’s a wrap for today! If you enjoyed this edition of Scrubs, make sure you forward it to a friend. That would make my day because it helps Scrubs grow.

See you Wednesday,

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