Some more great news for the insurance industry. Blue Cross Blue Shield of Michigan reported a $265-million net surplus last year on $21.3 billion of revenue as the insurer’s investment returns compensated for an underwriting loss. Daniel Loepp is president and CEO and he got a $1.4 million base salary, a $1.8 million yearly bonus and about $828,000 in other compensation, including personal insurance and a vehicle allowance. He also received a $2.5-million long-term performance bonus that he wasn’t yet eligible for in 2012.
“It is gratifying to see Blue Cross continue to perform strongly — growing membership, maintaining the financial strength our members rely upon, and maximizing income from investments to take as much pressure as possible off our health insurance members,” CEO Dan Loepp said in a statement.
Oh, Danny Boy, the cash, the cash is calling.
As a nonprofit, the Blues’ surplus goes into reserve funds for paying out policyholder claims. The insurer said it spent $18.8 billion on benefit claims last year.
Yes, you read that right. It’s a nonprofit. They bury their gains in large amounts of salaries and administrative hirings. Remember, this is just one state. As the insurers rake in the cash, they continued to raise insurance rates. It never ceases to amaze me. Or piss me off.