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Thursday, July 30, 2009

Executive Compensation at PA's Largest Blues' Plans

Highlights on CEO salaries/perks of the Blue Cross giants in Pennsylvania:
# The compensation of the Highmark and IBC CEOs was commensurate with the rank of Highmark and IBC among Blue Cross and Blue Shield plans. For example, in 2007 the $3.6 million compensation of Highmark's Ken Melani was the fifth highest among all Blue plan CEOs, while Highmark was the fourth largest Blue. The $2.6 million compensation of IBC's Joseph Frick was the ninth highest among Blue CEOs, while IBC was the eighth largest Blue.

# Highmark and IBC executive compensation was generally substantially less than that of for-profit health insurers. Dr. Melani's $3.6 million and Mr. Frick's $2.6 million in 2007 compensation, for example, compared with Aetna's Ron Williams's compensation of $23 million and CIGNA's Ed Hanway's compensation of $25.8 million.

# Highmark and IBC executive compensation was in the same general range as that of the major non-profit hospital systems in Pennsylvania. For example, in 2006 -- the most recent year for which executive compensation for non-profit hospitals is available -- Dr. Melani received $3.2 million and Mr. Frick received $1.6 million, while the CEOs of Jefferson Health System, the University of Pennsylvania Health System, and UPMC received $1.7 million, $3.5 million, and $4.0 million, respectively.
Read more from the report at the link below:

Insurance Department Releases Report on Executive Compensation at State's Largest Blues' Plans

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