According to the Boston Globe, the CEO of the nonprofit Blue Cross Blue Shield of Massachusetts is going to get a retirement package worth $8.6 million after only six years on the job. From the Boston Globe:
Cleve L. Killingsworth, who abruptly resigned last March as chief executive of the nonprofit Blue Cross Blue Shield of Massachusetts, collected $8.6 million in compensation from the state’s largest health insurer in 2010.
[...]
The $8.6 million that Killingsworth, 58, took with him is a combination of the $273,040 salary he received for his 2 1/2 months at the insurer last year; a $922,480 bonus for his work in 2009; and $7.4 million in additional compensation, according to the regulatory filing. That additional money represents the severance and retirement payments that accrued over his six years at Blue Cross, including almost five years as chief executive. Much of the retirement pay had been reported previously.
With around 3 million members this pay package is effectively adding three dollars to the premiums of every individual covered.
Or to put it another way, an average family health insurance policy in Massachusetts cost about $15,000 a year. This means to cover the cost of his severance package, it will take all the premiums paid for 573 families for an entire year. By comparison, the Secretary of HHS, which runs Medicare, has a salary of roughly $200,000 a year.
Of course, this is 8.6 million good reasons why the insurance companies spend so much fighting a public option that would give people the option of a government-run plan that would be roughly 25 percent more cost-effective and wouldn’t waste our premiums on massive CEO pay.
As a country, we don’t have a health care cost problem or a deficit problem. We have a political corruption problem that simply manifests itself in politicians who write laws that allow health care companies to greatly overcharge American consumers and the government.




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Golden parachutes for the overlords; golden showers for the rest of us.
It is crazy that we allow so much of our health care costs to be consumed by these robber barons. Those millions could have saved lives and improved the quality of care, but these fat cats skim it off so they can buy yachts. This is the free market vision realized – a few making ridiculous amounts of money while many suffer. Sound fair to you?
And what is interesting is that this insurance company executive was able to get this money because of the insurance industry lobbying efforts. In other words, Killingsworth — and how about that as a name for jokes: he made a killings worth of money for five years of employment by denying care to people to increase profits probably killing people in the process that apparently are worthless to Killingsworth — but I digress — Killingsworth had a union fighting for his rights to make gobs of money. But in the case of big corporations — these unions are known as lobbyist.
So unions that are trying to do the same for the working class of America — and on a much smaller scale — are being villified in the media as being greedy bastards? There is something very wrong with this country.
But you’re from the left of the left and should be drug tested if you believe in the public option.
And advertising, lobbying, bribing politicians…
Indeed only a crazy person would want to save $3,000 a year.
This is simply a case of capitalism applied to non-profits. Grab all that you can get. We should be looking up to this guy because he is pointing the way. Being a non-profit doesn’t mean that it is working in the interest of the public. Just remember: “If you aren’t the ceo of a non-profit insurance company, you need to get to be one.”
This isn’t the first time that BCBS has gifted its departing executive with an outlandish retirement package.
In 2009, BCBS of Vermont gave CEO William Milnes a retirement of $6.3 million. In June 2010, the state of Vermont forced BCBS to refund $3 million to its customers.
http://7d.blogs.com/blurt/2010/06/blue-cross-blue-shield-ordered-to-repay-3-million-in-executive-payout.html.
Under what tax scheme do these companies qualify as “non-profits?”
The most infuriating part of this entire thing, is that this type of blatant overpay, has been happening for far too damn long. Corporations of all stripes are still doing this. Even the government’s media propoganda arm (the MSM) reports on this almost every day. What is the political response from D’s and R’s? Crickets. Companies that have to lay off because the economy is oh so terrible, keep doing this exact same method of rewarding their heads. The media report it. The blogs report it. The fatcat rich politicians say “so?”…..unreal.
How do you expect to attract the best talent if you aren’t willing to pay them market value? Unfortunately no one is willing to run a 3 million member insurance group for the cost of a Big Mac and a slap on the back. Why does this surprise anyone?
Besides after Big Government takes their cut he won’t even have enough to buy that retirement home on Cape Cod.
Ka-Ching! What will he spend it on? Nothing to help this country, I’m sure.
And in the meantime, Scott Walker – lacky to David Koch – is blatantly screaming that WI govt workers are ripping off WI tax payers for getting an average of $24k per year in pension benefits after working for the state for upwards of 20 years or more and personally contributing to the pension system.
These kinds of corporate rip-offs have been going on for years and years, yet *not one* politician bats an eye, while the corporate-owned rightwing media brainwashes the serfs to turn their heads and hey! look over there at those other serfs getting a few crumbs more than you!!!‘
Outrageous but utterly unsurprising, frankly. And this crook made his killings-worth for working so hard for only five years. Gimme a break!
Will most likely “invest” it in his current private Swiss bank account… the one without the numbers, ya know, so that the USA cannot tax it.
Of Course! Either there or somewhere in the Caymans.
David Dayen has a fresh cross-post ready: Right-Wing Wisconsin Senator Fishes for Trouble with Capitol Protesters
Or to put it another way, how many lives might be saved/improved with $8.6m. This situation will only worsen with Obama’s forced purchase of medical insurance.
These healthcare CEO’s are so talented.
So, why don’t all these inefficient national healthcare programs, run in foreign countries (France, Canada, etc.), hire these brilliant American CEO’s away to do their magic and improve their country’s healthcare system?
So are you claiming that all Presidents, the Cabinet, and Congresspeople – Republican and Democrat alike – aren’t capable of running large corporations because Presidents only get paid six figures?
You sillies–if they hadn’t dumped that measly $8.6M, they might have shown a profit
That isn’t why I’m saying. Though it is probably true.
What I’m saying is if these firms want the same kind of talent that the for profit businesses currently have then they will need to pay those kind of prices for talent.
But back to your original statement, I think if the President of the United States was making $5-$10 million per a year you would have a more talented pool of applicants to choose from.
Motherfucker!!!
On BCBS of Ma, simply another and a no-surprise example of the US insurance syndicate’s corrupt operation in particular and how the economic-political power structure in general keeps the market and profit driven healthcare system going in this country.
I’m glad to hear some progressives favor tax reform!!
Yes, as a progressive I whole-heartedly support restoring a large and more progressive tax income tax brackets, so that those earning giant salaries, like this Killingworth, will get taxed at much higher rates than they do now.
Plus I whole-heartedly support increasing Capital Gains taxes from the present very low 15% rate.
And I support taxing HedgeFunder earnings as income, rather than capital gains.
That’s just for starters… there’s more that I support “reforming.”
Colorado is going in a different direction. State Senator Irene Aguilar has just introduced a bill to form a commission that will design a Health Care Cooperative. This will be a not-for-profit, non-governmental entity that proposes to cover all Colorado residents.
As a physician who has practiced at Denver Health for over 20 years, Senator Aguilar has a view-from-the-trenches vision of what changes must be made in health care delivery to make a Cooperative efficient and affordable.
I attended the public hearings for the bill on Monday and the sole 3 witnesses who spoke against it were lobbyists for the health insurance industry. If realized, the Cooperative would sharply reduce their business in Colorado. Although, innovative insurers would probably find niche markets, as they do in Switzerland.
If you are interested in learning more about the Health Care Cooperative concept, check out their website:
http://www.cohealthcoop.org/bill
A tax exempt not for profit corporation providing a multi million dollar “chute” ride for a corporate slime-ball? Let’s protect the slave owners? What kind of deals where cut with the Beacon Hill slime fuckers? A great way to relieve the burdens of government? Corporate Sodomizing the governed bought and paid for with campaign contributions!!
Leveraged corporate servitude under fear of tax penalty!!! Fuck off slime-balls………….
Years ago I knew one of the CEOs of BCBS of MA. He was well off but not rich. This obscene compensation is something that has evolved in the last 30 years.