The Fourteenth Banker Blog

August 10, 2010

Not a Good Corporate Soldier

Filed under: Running Commentary — thefourteenthbanker @ 6:36 PM

This article illustrates what is wrong with corporate America today.  If you don’t support the corporate instinct to gouge, you are not a good soldier.

Leslie Margolin, who recently resigned as president of Anthem Blue Cross in California, isspeaking out against a plan put forth by the health insurance company earlier this year to increase the cost of individual coverage plans by as much as 39 percent.

Margolin claims she urged the insurance giant to reconsider its intention to spike its rates and to explore alternative solutions to lower the cost of care, the Los Angeles Times reports.

“I thought the rates were too high,” explained the former Blue Cross president. “I thought the impact on our membership was too significant.”

We need more executives to speak up, then speak out.  Assuming these facts are correct, thanks are due to Margolin for being a good citizen, if not a good soldier.

“Her undoing was that she rocked the boat and wanted to do things a different way,” said the individual, who spoke on the condition of anonymity. “She wasn’t a good corporate soldier.”

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1 Comment »

  1. Insurance learned the lessons of banking quickly after the fall of Glass-Steagal.

    What surprises me in both industries is this: given the current horrendous choices offered to consumers in both insurance and banking, it would only take ONE good company to break the mould and offer products/services (in plain English) that actually BENEFIT the consumer – and they could LITERALLY, OWN THE MARKETPLACE.

    Sure, Wall St. would clobber you for lower margins relative to the competitive landscape, but who could ignore a company with a US market share in double digits and skyrocketing relative to the others.

    Are we all wrong about the beneficial effects of competition in a capitalist marketplace?
    Or is there collusion in these markets?
    … or are the bankers and insurance guys just to stoopid to recognize the obvious –
    and if so, it’s just a matter of time until someone decides to ‘build a better mousetrap’, n’est pas?

    Comment by Lucy Honeychurch — August 10, 2010 @ 9:40 PM | Reply


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