Health insurance companies are significant stakeholders in healthcare reform. CIGNA is one of the industry’s giants. With Democratic-led healthcare reform looking ever closer to reality, they have picked a new CEO to guide them through the changes. David M. Cordani is understandably concerned on the impact greater regulation will have on his business. However, he has several effective prescriptions that, if added to current legislation, could improve health while decreasing health insurance plan costs.

Like many health insurance plan providers, Cordani believes that neither the Senate nor the House of Representatives’ version of the bill does enough to target the causes of soaring medical expenses. Admittedly, administrative costs and profit margins do not help the situation. As the new chief executive, he will be earning a total salary up to $9 million each year. Taxing health insurance companies and imposing limits on them, as the combined bill will do, could inspire companies to cut back on salaries to trim the fat.

Cordani does not think that doing so will be very effective in increasing the quality standard of care while reducing costs. Instead, he would like to see greater focus on preventative care that will improve health. Specifically, about one-third of Americans are overweight or obese. The obesity epidemic facing our nation raises the cost of an average health insurance plan, because it must pay out claims for medical care related to it. Coronary and musculo-skeletal diseases, as well as diabetes and some cancers, are chronic conditions that can be caused or exacerbated by being obese. The cost may be unsustainable, according to Cordani, if insurers are limited in what they can charge and unable to deny coverage.

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