The Los Angeles Times reports that “in response to mounting criticism, Blue Shield of California’s chief executive is vowing to improve the nonprofit insurer’s poor ratings from patients and to disclose more about executive compensation.”
“But CEO Paul Markovich warned that certain details on executive pay will remain secret, portending a potential showdown with regulators.”
“Markovich has been dogged by questions for months surrounding the insurance giant’s nonprofit status, lack of transparency and repeated rate increases despite holding $4.2 billion in reserve.”
“On executive pay, the San Francisco insurer faces more questions.
“The Times reported last month that Blue Shield boosted executive pay by $24 million in 2012 — a 64 percent jump over the previous year — according to a confidential tax audit. Some of that money probably went to former CEO Bruce Bodaken as part of his retirement package.”