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

ghmark 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
    


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    SOURCE Pennsylvania Department of Insurance
    Copyright©2009 PR Newswire.
    All rights reserved

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