Blues Plan CEOs Collectively Earned $110 Million in 2015, AIS Newsletter Reports
Atlantic Information Services, Inc. (AIS) - October 19, 2016 - Washington, DC

CEOs representing 28 Blues plans collectively earned more than $110 million in 2015, The AIS Report on Blue Cross and Blue Shield Plans reports in its October 2016 issue. The $110 million includes about $24 million in salary, $54 million in bonuses and $32 million in other compensation. While CEOs from a few Blues plans saw their overall compensation dip in 2015, many had significantly higher bonuses and other financial incentives, The AIS Report found. The AIS Report is not affiliated with the Blue Cross Blue Shield Association or its member companies.

Charles Elson, director of the John L. Weinberg Center for Corporate Governance at the University of Delaware, explains the increase in executive compensation as a “natural” response to the way executive compensation packages are created, “which is by comparing CEOs to CEOs at similarly situated companies. No board wants to pay its CEO below the median, or slightly above the median....Performance-based incentives are built in, but the total package increases due to what everyone else is getting.”

Based on data from individual Blue Cross and Blue Shield plans, state insurance department documents and U.S. Securities and Exchange Commission filings, The AIS Report found that the highest paid Blues plan CEO was former Health Care Service Corp. CEO Patricia Hemingway Hall, who earned $1.5 million in salary and more than $15 million in bonuses and other compensation. Other top earners include Anthem, Inc. CEO Joseph Swedish, who ended 2015 with $13.6 million, and Blue Cross Blue Shield of Michigan CEO Daniel Loepp, who had the largest executive compensation package amongst single-state carriers in 2015.

Visit https://aishealth.com/archive/nblu1016-01 to read the article in its entirety, which includes a table ranking Blues plan CEOs by their 2015 total compensation.

About The AIS Report on Blue Cross and Blue Shield Plans
The AIS Report on Blue Cross and Blue Shield Plans delivers timely news and insightful analysis of new products, market share, strategies, conversions, financing, profitability and strategic alliances of Blue Cross and Blue Shield plans, which are major players in every U.S. health insurance market. The monthly newsletter is designed for plan managers and others who consider BCBS plans to be partners or competitors. Visit http://aishealth.com/marketplace/ais-report-blue-cross-and-blue-shield-p... for more information. A thoroughly objective publication, The AIS Report is published independently by AIS and is not affiliated with or sponsored, endorsed or approved by the Blue Cross and Blue Shield Association or any of the independent Blue Cross and Blue Shield companies.

About AIS
Atlantic Information Services, Inc. (AIS) is a publishing and information company that has been serving the health care industry for nearly 30 years. It develops highly targeted news, data and strategic information for managers in hospitals and health systems, health insurance companies, medical group practices, purchasers of health insurance, pharmaceutical companies and other health care organizations. AIS products include print and electronic newsletters, databases, websites, looseleafs, strategic reports, directories, webinars, virtual conferences and training programs. Learn more at http://AISHealth.com.

Contact
Jill Brown, Executive Editor
Atlantic Information Services, Inc.
(202) 775-9008, ext. 3058
jbrown@aishealth.com

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