Health Insurance CEO Salaries and Insurance Premiums
High CEO salaries may have contributed to rising health insurance premiums on health insurance applications in recent years. However, more recently, salaries for the Chief Executive Officers of some insurance companies have decreased. While CEO salaries for insurance companies, which may exceed $20 million per year, may not be excessive compared to other industries, they still have an impact on insurance premiums. 
From an insurance company's perspective, the cost of compensating insurance company executives is part of the cost of doing business. In order to compete for the top executives, companies must offer competitive salaries. From the policyholders' perspective, however, premiums have risen to the point that affordable health insurance may seem out of reach.
Rising Health Insurance Rates
Although CEO salaries play a part in the rising costs of health insurance, executive compensation is not the only cause for high premiums. Many factors have contributed to the rise in health insurance costs. For insurance companies, the cost of covering medical services has increased. Advances in medical technology, while they have had a positive effect on the outcomes of health care, have contributed to the rising costs of health insurance.
Physicians and hospitals may be ordering more diagnostic exams and exploratory procedures than they did in the past. With the cost of liability insurance for medical practitioners increasing, doctors may be ordering more diagnostic exams and procedures. Concerns over malpractice lawsuits have caused practitioners and facilities to be more cautious about the care they provide.
In a private health care system, the cost of health insurance may reflect the cost that the market is willing to bear. If consumers and businesses are unable to buy health insurance because of high premiums, insurance companies will eventually be required to lower their premiums in order to sell their insurance policies. As with any other business, the health insurance industry may eventually respond to the law of supply and demand.
Lowering Health Insurance Premiums
A decrease in executive compensation may not result in a noticeable reduction in the cost of health insurance. Consumers are still concerned about the rising costs of health care, even if CEO salaries have decreased. While health insurance companies were able to raise their rates at one time without justifying the cause, rate increases that exceed a certain threshold are now subject to review by industry experts. If CEO salaries are the cause of a rate increase, this increase must be justified.
Individuals and small businesses, in particular, are affected by the rising costs of health insurance. Group coverage minimizes the risk to the insurer by spreading the risk among a larger population. However, individuals, families and small businesses are evaluated more closely and must generally pay high rates for more limited services. While CEO salaries may affect insurance premiums, the level of risk that an individual presents also affects the cost of health insurance.
Although it may take time for health insurance premiums to be adjusted to accommodate the needs of consumers, you can take measures to lower the cost of your health insurance. Choose a health insurance plan that fits your needs, without additional benefits that you don't require. If you find that you aren't using certain benefits, consider switching your coverage to a more basic plan.
Health insurance CEO salaries may be one of the reasons for rising health insurance premiums. However, for many consumers, changes in the way CEOs are paid may not make a significant difference in the cost of their policies. You can take steps to reduce your costs by comparing quotes from different providers to find a plan that's compatible with your lifestyle and budget.
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