Compensation for the 10 highest-paid executives at not-for-profit insurer Blue Shield of California totaled $14 million in 2011 and was nearly unchanged from 2010, according to rate filings with the state Department of Insurance, the Los Angeles Times reports.
A spokesperson for Blue Shield said new rules under the federal health reform law had no bearing on executives' pay.
Last year, the state began requiring health insurers to report their executives' pay to help regulators scrutinize premium increases.
The federal health reform law's medical-loss ratio rule places limits on how much of policyholders' premiums can be spent on salaries, expenses and administration (Terhune, Los Angeles Times, 8/11).
The rule stipulates that private insurers must spend at least 80% in the individual market or 85% in the group market of premium dollars on direct medical costs (California Healthline, 8/1).
As a result of the rule, Blue Shield issued $10.8 million in rebates to policyholders last month.
Blue Shield Rate Filing
According to rate filings, Bruce Bodaken, chair and CEO of Blue Shield, earned $4.6 million in 2011, or 1% less than he did in 2010.
A Blue Shield spokesperson said that compensation for executives was similar to 2010 because the insurer "made comparable progress on our goals for the year."
Other 2011 Rate Filings
According to 2011 filings from other insurers:
- Health Net paid its CEO Jay Gellert $10.3 million in salary, stock awards and other compensation, a 35% increase from 2010;
- UnitedHealth Group paid its CEO Stephen Hemsley $13.4 million in salary, stock awards and other compensation, a 24% increase from 2010; and
- WellPoint paid its CEO Angela Braly $13.3 million in salary, stock awards and other compensation, a decrease of 2% from 2010 (Los Angeles Times, 8/11).