The Star Tribune published two letters to the editor yesterday regarding the awarding of stock options to CEO Dr. Bill McGuire and board members of UnitedHealth.
One came from a former competitor, a rare intra-industry shot in health care. Dr. Donald Woodley, medical director of Blue Cross Blue Shield (MN) from 1973- 1985, wrote: "As a former medical director, I was always embarrassed by the money Dr. Bill McGuire was sucking out of the health care system. However, I always thought the board would watch over this and keep it within reason. Now I understand why no action was taken. The board members were too busy lining their own pockets with millions of dollars in stock options."
Another citizen wrote: "In nearly three decades of working with low-income, uninsured or underinsured persons, I have observed their difficulties in securing affordable health care coverage and, in turn, the health care they desperately need. As such, I read with dismay and disgust April 20 of the excesses characterizing Dr. William McGuire's compensation and UnitedHealth Group's compensation strategies -- excesses that may well have been inflated by the timing of stock options that were exercised.
A commitment to legalistic ethics may meet minimum standards, but we expect more from community leaders. As McGuire and UnitedHealth Group justify compensation practices and the timing of stock options, they must be reminded that just because something is not illegal does not mean it isn't fundamentally wrong.
The compensation practices of UnitedHealth directly affect the affordability of coverage, systematically keep many people from acquiring coverage and, arguably and ultimately, are a violation of Hippocrates's famous admonition that compels health providers 'above all else, to do no harm.' "
Posted by schwitz at April 25, 2006 07:03 AM | TrackBack