Blue Cross Blue Shield Suspends Directors’ Pay In Mass.

By Jay Lindsay, Associated Press

BOSTON (AP) — The state’s largest insurer has suspended pay for its board members amid scrutiny by Massachusetts Attorney General Martha Coakley.

Coakley said she was “encouraged” by the decision Tuesday by Blue Cross Blue Shield of Massachusetts, a health care non-profit classified a “public charity” by the state. She said compensation for board members at public charities was “extraordinarily rare.”

The stipends can range $70,000 to $80,000 annually.

Blue Cross said Tuesday it would work with Coakley on its classification as a “public charity.” It said the classification creates expectations that the $13 billion enterprise will “operate like museums.”

The company also said it accepted “full responsibility” for the $1.4 million in severance it paid former CEO Cleve Killingsworth, and said it understood why the community might see it as too generous.

(© Copyright 2011 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

Comments

One Comment

  1. laura says:

    A “public charity”????? More like a rape of the public. Insurance companies systematically pillage the Massachusetts families with increasing costs, less coverage, inadequate coverage.. etc. Meanwhile, they are a “public charity” which assumedly means they pay little to no taxes while reaping a huge enough profit to pay someone a $1.4 million dollar severance package? This is sickening.

  2. emom says:

    This is rich, this will only slow down for a breif moment, then it will be business as usuall. Meanwhile the insured will suffer more and more and get so much less , Its been happening to them for decades and its only now that its being brought to the folks , but will anything even be done about it. I dont get why these board members who truely dont run the company need to get such extravagant pay… I am sure some of them are on boards of other companies, pure greed on their part, how about trying to bring in some of the actual insureds to be on the board, have a panel of patiences hear their voices of how you take from them but give them nothing, I feel hearing their voices is critical, and benifical,,, greedy selfish board memebers should step down permantly

  3. J. Poe says:

    How is it that a “non profit” even has the monies to pay such outrageous benefits packages. Don’t care that the outgoing Director’s package was put in place in 2005. Makes no difference. It was outrageous then and outrageous now. It is coming to the forefront now as we are in a fight for the life of the middle class. The middle and lower income groups in this country are constantly being robbed, stripped of benefits and outright
    assaulted at every turn. BCBS nationwide should be investigated by the AG of the US.
    Again, does someone have the answer here? How is it that an insurance company can be a “non profit”?

  4. dannie says:

    now take that money you are not paying directors and use to help the underinsured or thoose who can’t afford insurance . TO THE LARGE COMPANY’S IF YOU WANT THE PEOPLE OF USA TO RESPECT YOU, PUT THAT MONEY WHERE YOUR MOUTH IS, DO SOME GOOD WITH IT. WE THE PEOPLE IN THIS COUNTRY ARE SICK AND TIRED OF YOU IDIOTS HELPING YOURSELVES AND NOT THE PEOPLE WHO NEED IT.

  5. DStein says:

    Funny, union president Robert Haynes of the AFL-CIO had no problem cashing his $72,000 check for being on the Board of BCBS. He also had no problem giving outgoing CEO Killingsworth an $11 milliion golden parachute on the way out the door. All while passing higher health care premiums along to employers and members.

    This has been going on for years, but Martha Chokely didn’t do a thing about it until there was public outcry. Her typical M.O. Suddenly Martha want’s to act like a responsible adult instead of the usual liberal hack she is. Meanwhile, BCBS has been asking it’s members to bend over and take huge premium increases up the wazoo.

    Too little too late, Martha!

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