A provision in the Senate GOP's Better Care and Reconciliation Act could potentially result in a pay boost for health insurance executives, reports The Washington Post.
Here are three things to know.
1. The BCRA and the House GOP's American Health Care Act would get rid of an ACA provision "that effectively makes it more expensive for them [insurance companies] to pay their CEOs," according to the report.
2. Prior to the ACA, insurance companies were subject to the typical rules for corporations, under which insurance companies could deduct up to $1 million in cash from the pay each executive gets from the income the company reports to the Internal Revenue service, according to the report. This excludes stock options and other reimbursement. The ACA changed that allowed amount to up to $500,000 for each insurance company executive, the report states. That ACA provision, specifically for insurance companies, did take into account stock options and other compensation.
3. The BRCA and AHCA would allow insurance companies to go back to the typical rules for corporations, "and have a stronger incentive to offer big money to their top executives," the report states.
Read the full story here.