Navigation Links
Insurance Department Releases Report on Executive Compensation at State's Largest Blues' Plans
Date:7/30/2009

HARRISBURG, Pa., July 30 /PRNewswire-USNewswire/ -- The Pennsylvania Insurance Department today released an examination report providing comprehensive information on the compensation Highmark Inc. and Independence Blue Cross pay their executive management teams. The report was originally part of the department's review of the two companies' consolidation filing, but carried over when the companies withdrew the consolidation proposal earlier this year.

"Our report concludes that the compensation packages of Highmark and Independence Blue Cross are reasonable under the applicable legal standard," said Insurance Commissioner Joel Ario. "That standard required us to compare executive compensation at these two companies to comparable companies. Our compensation expert determined that the best comparables were other Blue Cross and Blue Shield companies and major non-profit hospital systems.

"In addition to demonstrating the comparability of compensation among the Blue Cross and Blue Shield insurers nationwide, the report offers a wealth of information on executive compensation practices across the health care sector at a time when executive compensation issues are being actively debated in the Congress," Ario added, noting that the report provides a wide range of comparisons among for-profit and non-profit companies in the health care sector.

"Our focus was on comparability because that is the legal standard and it also is what drives competition for executive talent," said Ario. "Whether the compensation scale is fair in a broader public policy sense, or whether new regulations are needed, are questions that are appropriately left to the legislative branch."

The report was authored by Jay Angoff, a former Missouri insurance commissioner with expertise in executive compensation. Among the report's key findings:

  • The compensation of the Highmark and IBC CEOs was commensurate with the rank of Highmark and IBC among Blue Cross and Blue Shield plans. For example, in 2007 the $3.6 million compensation of Highmark's Ken Melani was the fifth highest among all Blue plan CEOs, while Highmark was the fourth largest Blue. The $2.6 million compensation of IBC's Joseph Frick was the ninth highest among Blue CEOs, while IBC was the eighth largest Blue.
  • Highmark and IBC executive compensation was generally substantially less than that of for-profit health insurers. Dr. Melani's $3.6 million and Mr. Frick's $2.6 million in 2007 compensation, for example, compared with Aetna's Ron Williams's compensation of $23 million and CIGNA's Ed Hanway's compensation of $25.8 million.
  • Highmark and IBC executive compensation was in the same general range as that of the major non-profit hospital systems in Pennsylvania. For example, in 2006 -- the most recent year for which executive compensation for non-profit hospitals is available -- Dr. Melani received $3.2 million and Mr. Frick received $1.6 million, while the CEOs of Jefferson Health System, the University of Pennsylvania Health System, and UPMC received $1.7 million, $3.5 million, and $4.0 million, respectively.

The full report is available online via the department's Web site at www.insurance.state.pa.us under the company's respective links.

    CONTACT:
    Rosanne Placey or Melissa Fox
    (717) 787-3289


'/>"/>
SOURCE Pennsylvania Department of Insurance
Copyright©2009 PR Newswire.
All rights reserved

Related medicine news :

1. Thousands of Maine Residents Could Lose Private Insurance, Study Shows
2. Photos: Compete Releases Top Insurance and Physician Web Sites for June 2009
3. Max Value Insurance Group Rolls Out a New Program for Mortgage Brokers and Title Companies
4. Anthem Blue Cross and Blue Shield Introduces a Health Insurance Solution With a Special Boulder Flair to Chamber Members
5. Elected Officials Voting Against Health Reform Received 65% More in Campaign Donations From Health and Insurance Interests Than Those Voting for Reform
6. CIGNA Whistleblower Calls for More Heath Insurance Accountability in Heath Care Reform
7. Eastern Insurance Holdings, Inc. to Release 2nd Quarter 2009 Financial Results
8. Mandate for Health Insurance: Inconvenient Truths About How It Will Affect You and Your Family
9. Major Study of Malpractice Insurance Finds No Basis to Limit Liability of Unsafe Health Care Providers
10. Millions in U.S. Cant Afford Health Insurance
11. California Health Insurance Assistance Program Awarded 2009 Grant Funding, Says MedicareSupplementPlans.com
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:4/28/2016)... ... 2016 , ... Amada Senior Care, premier provider of non-medical in-home care and ... San Antonio West location. Prior to entering the senior care industry, Amada franchise partner ... Amada San Antonio West will take place on Friday, April 29th. , ...
(Date:4/28/2016)... ... April 28, 2016 , ... Point Source ... microphones and headsets announced today that the US Patent Office has approved its ... a structure. This innovative design creates a lightweight and modular audio headset that ...
(Date:4/28/2016)... Tamarac, FL (PRWEB) , ... April 28, 2016 , ... ... body recovery supplement GlycoLoad at this week’s 2016 Europa Games Get Fit and ... health conscious consumers alike, the Europa Orlando Expo coming up April 29-30, was selected ...
(Date:4/28/2016)... Washington, D.C. (PRWEB) , ... April 28, 2016 , ... ... Control and Prevention (CDC) has established an ICD-10-CM code for sarcopenia, giving it recognition ... by the medical community effective October 1, 2016. , Sarcopenia is defined as a ...
(Date:4/28/2016)... ... April 28, 2016 , ... ... health insurance co-operative bankruptcy to receive their prescription medications through America’s fastest-growing ... FDA-approved prescription medications from over 180 American pharmaceutical companies for $35 per ...
Breaking Medicine News(10 mins):
(Date:4/27/2016)... , April 27, 2016  Bayer Animal ... a senior from the University of Florida College ... the Bayer Excellence in Communication Award (BECA). Brittany ... which were awarded a total of $70,000 in ... last four years, Bayer has provided a total ...
(Date:4/27/2016)... Global  urinalysis market  is ... 2022, according to a new report by Grand ... http://photos.prnewswire.com/prnh/20150105/723757 ) , Automation is ... accuracy delivered by the new generation urinalysis devices ... instruments and consumables. For instance, the automatic bench-top ...
(Date:4/26/2016)... Holdings, Inc. (NYSE: HRC ) invites you to ... st Annual Health Care Conference on Wednesday, May 4, ... to listen to the live discussion via the internet link ... http://edge.media-server.com/m/p/mr4uxgas . A recorded replay of the discussion will be ... accessible at the links above until August 1, 2016. ...
Breaking Medicine Technology: