In conjunction with President Obama’s health care reform efforts, two powerful House Democrats sent a letter to health insurance companies Monday asking them to provide detailed information about their executive compensation, conferences and retreats, and other general business practices.
The letter (http://tinyurl.com/ko79hm), penned by House Energy and Commerce Committee Chair Rep. Henry Waxman (D-Calif.) and the panel’s Subcommittee on Oversight and Investigations Chair Rep. Bart Stupak (D-Mich.), is not a subpoena. Rather, it requests insurance companies’ help in “examining executive compensation and other business practices of the health insurance industry.”
In the letter, insurance companies were asked to provide, by mid-September, the compensation packages of any employee or officer who made more than $500,000 in any year from 2003 to 2008. It also asks the companies to list all their board members and their compensation. Additionally, companies are asked to provide a list of “all conferences, retreats or other events held outside company facilities from January 1, 2007, to the present.” The letter concludes with a request for more basic information, including companies’ total revenues, net income and total dividend payments, premium revenue, sales expenses, and profits.
While much of the information requested may be publicly available, should you be contacted by the committee, it is recommended that you consult with legal counsel prior to submitting a response.
Legal News Alert is part of our ongoing commitment to providing up-to-the-minute information about pressing concerns or industry issues affecting our insurance clients and colleagues.
If you have any questions about this update or would like to discuss this topic further, please contact your Foley attorney or the following:
Kevin G. Fitzgerald
Theodore H. Bornstein
Ladonna Y. Lee
Philip G. Kiko
Sarah E. Molenkamp
Let’s Talk Compliance | Provider Relief Fund: Reporting Requirements and Compliance Concerns