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.
This CEO needs a raise. The guy who runs United Health gets $100 mil annually plus perks. Of course they netted $6.5 bill the first half of this year.
It takes a certain “morality” (look it up, MBA’s) to practice medicine. It’s not a win/win enterprise to value “morality” – it’s a chump’s game. That’s our current take here.
Highmark BC in Pennsylvania had enough cash laying around that they purchased a failing hospital system in Pittsburgh for about $528,000,000. Yep. Half a BILLION dollars. (said with pinky to mouth, a la Dr. Evil) about 3 years ago.
http://www.modernhealthcare.com/article/20130429/NEWS/304299948
The big question is why does a nonprofit INSURANCE company have that kind of money available? Isn’t that money that should be designated to pay out for medical care for PATIENTS who need it?
“I’m sorry Mrs. Jones but we are denying payment to the doctor who saved your husband’s life because his coder used the wrong code/submitted his bill on the wrong paper/didn’t wait on the phone on hold the required 45 minutes/wore a blue shirt we didn’t like. But enclosed is a really nice picture of the new yacht our CEO just purchased with his bonus. Isn’t it shiny?”
The CEO at the time of the buyout in 2013 was Christopher Olivia was paid $6 million in 2011. The new CEO of Allegheny Health Network, John Paul was paid a mere pittance of $1.8 million in total compensation last year.
Do YOU know of any doctors (you know, those guys that actually do the WORK that brings in every dime of income to these hospitals) that make that kind of salary? Yeah, me neither.