When CBA announced it would lay off over 10,000 workers in a bid to trim its costs, the medical insurance industry was quick to weigh in.
A letter to the AMA and the American Medical Association from former CEO Andrew P. Pritzker, who was paid $1.9 million in 2015, called the cuts “disappointing” and “a terrible outcome.”
A spokesperson for the AMA did not respond to a request for comment.
“We continue to see that CBA’s plan to reduce costs by slashing health care benefits and eliminating incentives to work is not working,” the AMA said in the letter, which was sent in September.
“The AMA does not condone the decision and believes the CBA board has been misled by Pritzkers actions.”
CBA also said the cuts were necessary to reduce its debt and to provide the financial support needed to help stabilize its businesses.
In the letter to Pritzers, AMA President David Harris wrote that “it is very clear that CCA has made the correct decision and we commend CBA for taking this step.”
He said CBA “has a financial future and is not only in a stronger position to take on additional debt, but is also focused on improving the health of its workers and the health care system in this country.”
“We also recognize that the CCA Board of Directors is deeply committed to the health and well-being of the health plans they represent,” Harris wrote.
Pritzer is still on the job, but the AMA has suspended his compensation.
AMA president and CEO David Harris.
(Getty Images) The AMA also issued a letter to CBA on Nov. 1, urging it to release its pay and benefits.
“While we believe the company should be doing everything it can to improve its financial health, we do not support this action,” the letter said.
Prazers salary was not revealed in the AMA’s letter.
In a letter sent to Prazer’s lawyer, the AMA noted that the medical benefits he received were only part of his compensation, not all of it.
Pribenzki received more than $1 million in total compensation in 2015.
Pregenzki’s 2017 compensation was reported by the medical industry trade group Avalere Health, which said he was paid a base salary of $1,918,800 and a bonus of $5,100.
His total compensation, which includes stock options and a $50,000 salary, was $3,711,200, according to Avalere.