Also under examination are the huge salaries of the top executives...and if the merge is allowed, then patients and members fear another rate hike as there will be little competition to keep premiums at an affordable level...in 2006 a lawsuit was filed to stop the intended merger at that time....BD
Last night, state insurance officials were critical of the pay hike for executives and indicated the boost in compensation might have an impact on the agency's decision about the future of the companies.
"We are very concerned about HIP's announcement that it has doubled the salaries of its top 10 executives at a time when the company has not been performing well," a spokesman for the department, David Neustadt, wrote in an e-mail message. "As we consider its pending merger with GHI and conversion to a stock company, we will be asking the executives tough questions about this decision."
Since then, patient advocates, physician groups, and some lawmakers have been critical of the plan, which some said would eliminate competition in the marketplace and result in higher premiums.
HMO Chief's Pay Doubles Pre-Merger - April 18, 2008 - The New York Sun
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