One reason these plans are incredibly overpriced and inflated is that upper and top executives in drug and other medical service companies are paid many millions of dollars. Often $10 to $20 million plus. This is the one most cogent argument for a government run plan. Even the president only makes $400,000 and Congress under $200k.
How about a law that companies can only deduct salaries up to $1 or $2 million from their corporate business taxes, or 40 times the wages of their lowest level workers. This might result in lower dividends and more offshoring of jobs. Stockholders would raise hexx like they did when the discovered Goldman Sachs’ 3 top executives each earned over $60 million. They came close (43%) to voting a provision that there be a Stockholders Advisory on Executive Compensation. The next year, 2009, the CEO was only paid $25 million. Poor fellow ;-(
Interesting approach—rather than capping salaries, cap deductibility. Wonder if it would have impact or being just seen as another cost of doing business.