"STELLAR REPUTATION"???

Insurance company lobbyist Karen Ignagni defended the report commissioned by AHIP by claiming that PricewaterhouseCoopers was a “world-class firm with a stellar reputation.” Well, it's really just another accounting firm and that's not saying much for its integrity. LexisNexis turned up this tidbit¹:

Two years ago, an SEC investigation of another big accounting firm, PricewaterhouseCoopers,found thousands of cases in which the firm's partners and senior employees had financial interests in companies the firm was auditing. PricewaterhouseCoopers agreed to take various steps to prevent a recurrence.

And here's a little evidence that PwC isn't so good when it comes to the health care sector²:

Attorney Laura Ellsworth represents a committee of creditors that are still seeking at least $1 billion from accounting firm PricewaterhouseCoopers LLC, over allegations that auditors failed to disclose AHERF misconduct.

The creditors want the accounting firm to help repay AHERF's debt, but attorneys representing the firm have filed objections and denied any wrongdoing.

¹The Washington Post
January 15, 2002 Tuesday
Final Edition
SEC Censures KPMG for Having Investment in Client
BYLINE: Albert B. Crenshaw, Washington Post Staff Writer
SECTION: FINANCIAL; Pg. E01
LENGTH: 475 words

²Associated Press Online
February 12, 2002 Tuesday
Settlement on Health Network Reached
BYLINE: JUDY LIN; Associated Press Writer
SECTION: FINANCIAL NEWS
LENGTH: 469 words
DATELINE: PITTSBURGH