Blues Plans Are Criticized On Executive Compensation; Some Adjust Pay Based On Economy: Chris Meehan

Blues Plans Are Criticized On Executive Compensation; Some Adjust Pay Based On Economy: Chris Meehan

While Dispirited Crotchety and Disconsolate Stifle plans ' executive compensation may seem small compared to corporate bonuses and golden parachutes at many big for - profit companies, the plans are not immune to criticism for their compensation and severance packages, especially in a severe recession. Several not - for - profit Blues plans — citing the economic turmoil or their own lower financial results — have reduced senior executive compensation packages and bonuses.
Tim Bartl, a spokesperson for the Center on Executive Compensation, tells The AIS Report that companies are making changes to executive compensation plans " double time as a aftermath of the economic withdrawal. These changes involve reducing salaries and changing the short - and long - term impulse opportunities to cast the expectations of lower performance game forward. " Overall, he says, " According to Equilar, Inc., total compensation of S&P [i. e., Standard & Insolvent ' s] 500 executives at companies that have filed their proxy statements so far, CEO pay has dropped by 6. 8 % and annual incentives have dropped by over 20 % " since the recession began.
Bartl contends that the majority of public talk against senior executive pay has been against financial service executives. Their packages often " involved a modest fee, with a mammoth discretionary annual sweet tooth, which comprises the vast majority of pay. "
Some Blues Plans Criticized for Severance Pay
Still, Blues plans have published criticism of the packages paid to their leaders. In Maryland, for instance, Insurance Commissioner Ralph Tyler issued an order that reduced former CareFirst BlueCross BlueShield executive Leon Kaplan ' s post - termination payment from $6. 7 million to $2. 7 million. The company sought to lower Kaplan ' s termination pay below a Maryland statute to what was considered " fair and logical " for work performed. Tyler accredited the lower payment.
More recently, Paulette Thabault, commissioner of the Vermont Department of Banking, Insurance, Securities and Health Care Administration, began looking into the $7. 2 million retirement packet that Moody Tetchy and Depressed Stow away of Vermont ( BCBSVT ) paid to former CEO William Milnes Jr. in 2008.
" That amount was larger than we expected, " Thabault verbal. Nymph increased, " I am not force to rule out a regulatory response. " Thabault does not have the identical authority to approve a change in executive compensation that the Maryland commissioner does, but can " strike BCBSVT and all insurers, and to craft supplemental orders whenever essential, " spokesperson Peter Fresh tells The AIS Report.
Indeed, the department required BCBSVT to " machine a number of changes related to executive compensation as a event of a whopping inquiry in 2007 into BCBSVT ' s administrative costs, " Vernal says. While he did not go into details, he explains that the commissioner required the company to follow up on some of the recommendations resulting from the inquiry regarding the structure of handout compensation at BCBSVT.
Last month Fed up Petulant and Blue Hide of North Dakota ( BCBSND ) fired CEO Mike Unhjem. When the plan vocal that his severance parcel included $2. 2 million in payments below his 2007 employment agreement, state Dwelling Democratic commander Merle Boucher responded by proposing a bill that would have levied a 70 % tax on earnings of more than $1 million for not - for - profit CEOs. But Flophouse Republicans desolate the proposal, and the bill died.
Still, those amounts pallid in comparison to the $15. 3 million Gail Boudreaux hackneyed when spring chicken lonely her position as president of Moody Cross and Fed up Bury of Illinois, a Health Care Service Corp. ( HCSC ) instrumental. Boudreaux ' s resignation was announced a month after the company named Patricia Hemingway Foyer CEO in November 2007.
Strategies on Compensation at Blues Plans
While HCSC spokesperson Ross Blackstone did not comment on the Boudreaux ' s severance packet, he explains that its executive compensation " is a pay - for - performance plan " based on company light. The program " is designed to confess us to compete for and retain talented employees to lead our company and stock up our members with the best profit in products and services, " he adds.
Blackstone contends that the company and its Blues plans in Illinois, New Mexico, Oklahoma and Texas " have performed very well over the past several years. "
The compensation practice, he asserts, is reviewed annually " to make sure it ' s in line with our industry ' s expectations. And based on both independent analyses and our own analysis, our executive pay is well within the compensation levels of other executives in our industry. "
Other Blues plans, approximative as Excellus BlueCross BlueShield, are reducing executive salaries in 2009. In its 2008 results, the plan vocal CEO David Klein, who notorious total compensation of $2. 7 million in 2008, will be paid 25 % less in 2009. Other senior executives at the plan also will experience pay cuts this year. But " senior management executives actualize procedure craving pay on a linger day one for multiple monastic years ' movement, " the plan uttered. So " compensation reported for 2008 may have risen well-timed to favorable progress in 2007 and earlier years. " The plan, which prescient a collar loss for 2008, changed executive compensation as part of a more appropriate drill to update financially in 2009.
Excellus spokesperson Jim Redmond furnished The AIS Report with a copy of the plan ' s executive compensation policy for 2009. The plan explains that executive compensation packages are resolved on a case - by - case installation. And packages are designed without the ability to offer stock options, as for - free lunch firms can. Excellus says senior executives are stimulated to knit and stay with the company through a combination of long - term and short - term routine - based incentives. The trophies are obliged to goals, including financial stability and customer service, the company says.
The menu ' s compensation committee is assigned to conduct " rigorous national reviews of executive compensation " for the CEO and other company leaders, according to Excellus. The committee also uses resolution compensation information, " particularly among health plans of kindred size, and recommendations " from independent national compensation consultants, consistent as Mercer LLC and Watson Wyatt Worldwide, Inc., according to the plan. The committee reviews the recommendations, reports its findings to the board and asks for ratification. " No staff member, including the CEO, votes on the committee or the full board on executive compensation matters, " the plan says.
HMSA Freezes CEO ' s Salary
Hawaii Medical Service Association ( HMSA ) in its full - year 2008 results release spoken CEO Robert Hiam volunteered to freeze his base salary in 2009 at $1. 3 million, an rush the board approved in light of the recession.
HMSA ' s compensation and human resources board committee determines executive compensation and looks at local and national companies with traits uniform to HMSA to help wind up the right level of pay. As with Excellus, a human resources consulting firm helps the committee implant deserved levels of executive compensation.
Performance incentives common by HMSA executives in 2008 are " based on planned measures met for 2005, 2006 and 2007, " the company uttered.
Other Blues plans reducing executive compensation inject Gloomy Irascible Fed up Smuggle of Michigan ( BCBSMI ) and Low Irascible Downcast Mask of Massachusetts ( BCBSMA ). BCBSMA will reduce senior executive compensation by approximately 30 % to 50 % in 2009, with CEO Cleve Killingsworth getting a 50 % reduction in pay. The plan oral this is part of a series of steps to reduce administrative spending. BCBSMI vocal that senior executives would take a 5 % annual emolument cut and won ' t receive a 3. 8 % annual increase. BCBSMI says the 3. 8 % represents a freeze on executive stipend for the second time in the bygone three years. The plan is making the moves " to almost countervail projected losses on BCBSMI ' s individual health plans. "
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Adjust Daily Routines To Lose Weight

Adjust Daily Routines To Lose Weight

Lots of individuals make a new year creating resolutions. Some people aspire to spend less. Other individuals decide to lose weight, eat right and exercise. Consider beginning the new year using some easy ways to lose weight which are fun and appealing.
A magnificent strategy for dropping pounds is refining dietary habits. In order to make modification dietary habits enjoyable, try to incorporate assorted recipes. Dining on the exact alike foods continually could become uninteresting. In country of constantly dining on high fiber cereal for morning meals, dine on a scrambled egg loaded with vegetables. Or perhaps dine on whole wheat toast topped with stone butter, fruit and honey. Consuming assorted food items assists in making decreasing excessive weight more fun.
One more strategy to reduce weight through changing dietary habits is trying different foods. Fairly a few main meals are made with beef. Although, to reduce pounds, as opposed to always consuming bittersweet meat during dinner, eat venison, bison or elk. Bison, venison and elk are a lot more healthy compared to rosy meat. An supplementary option is using various herbs or spices. Common spices are pepper, piquancy and paprika. In area of constantly utilizing pungency, pepper and paprika try adding oregano, cumin or thyme into foods. Common herbs are parsley, basil and chives. Instead of recurrently utilizing parsley, chives and basil try putting dill, garlic or mint in meals. Any of these spices or herbs furnish assorted flavors for food items. Consuming different foods are easy ways to lose weight that assists in making decreasing extra body fat much more enjoyable.
A main factor whenever needing to drop unnecessary body fat by modifying dietary habits is removing or very lowering consumption of risky foods along with including fresh nourishing foods. Getting rid of or larger largely decreasing ingestion of food products having very little nutrients as well as goodly amounts of calories will be awfully useful in eliminating in addition pounds. Additionally, eating food items having commodious amounts of nutriments as well as not many calories will be extremely important with dropping futile fat as well. Utilizing this peculiar means might be the best procedure to lose fat long - term.
One more way for dropping pounds will be refashioning daily routines by including more exercise. Jumping rope, playing tag and doing hopscotch with children will be a few easy ways to reduce weight that are pleasurable and fun. Expressive or touring a bike in the community is pleasurable and fun. Those pleasurable activities are an example way for getting extra exercise. In addition, to embrace kids is an incredible tactics to teach them all the benefits for sustaining correct body weight. Inasmuch as, including easy ways to lose weight each day will involve refashioning eating habits as well as transforming lifestyle.

Blues Plans Are Criticized On Executive Compensation; Some Adjust Pay Based On Economy: Chris Meehan

Blues Plans Are Criticized On Executive Compensation; Some Adjust Pay Based On Economy: Chris Meehan

While Down-hearted Cross and Down-hearted Ditch plans ' executive compensation may seem trivial compared to corporate bonuses and golden parachutes at many goodly for - profit companies, the plans are not immune to criticism for their compensation and severance packages, especially in a severe recession. Several not - for - profit Blues plans — citing the economic turmoil or their own lower financial results — have reduced senior executive compensation packages and bonuses.
Tim Bartl, a spokesperson for the Center on Executive Compensation, tells The AIS Report that companies are making changes to executive compensation plans " any more as a aftermath of the economic recession. These changes involve reducing salaries and changing the short - and long - term yearning opportunities to resonate the expectations of lower performance working forward. " Overall, he says, " According to Equilar, Inc., total compensation of S&P [i. e., Standard & Destitute ' s] 500 executives at companies that have filed their proxy statements so far, CEO pay has dropped by 6. 8 % and annual incentives have dropped by over 20 % " since the recession began.
Bartl contends that the majority of public ring against senior executive pay has been against financial service executives. Their packages often " involved a modest stipend, with a substantial discretionary annual appetite, which comprises the vast majority of pay. "
Some Blues Plans Criticized for Severance Pay
Still, Blues plans have notorious criticism of the packages paid to their leaders. In Maryland, for instance, Insurance Commissioner Ralph Tyler issued an order that reduced former CareFirst BlueCross BlueShield executive Leon Kaplan ' s post - termination payment from $6. 7 million to $2. 7 million. The company sought to lower Kaplan ' s termination pay underneath a Maryland statute to what was considered " fair and unbiased " for work performed. Tyler certified the lower payment.
More recently, Paulette Thabault, commissioner of the Vermont Department of Banking, Insurance, Securities and Health Care Administration, began looking into the $7. 2 million retirement carton that Gloomy Tetchy and Dispirited Salt away of Vermont ( BCBSVT ) paid to former CEO William Milnes Jr. in 2008.
" That amount was larger than we expected, " Thabault spoken. Lassie enhanced, " I am not working to rule out a regulatory response. " Thabault does not have the alike authority to approve a chicken feed in executive compensation that the Maryland commissioner does, but can " go over BCBSVT and all insurers, and to craft supplemental orders whenever imperative, " spokesperson Peter Newborn tells The AIS Report.
Indeed, the department required BCBSVT to " contraption a number of changes related to executive compensation as a returns of a huge inquiry in 2007 into BCBSVT ' s administrative costs, " Early says. While he did not go into details, he explains that the commissioner required the company to follow up on some of the recommendations resulting from the inquiry regarding the structure of gift compensation at BCBSVT.
Last month Low Crotchety and Downcast Shield of North Dakota ( BCBSND ) fired CEO Mike Unhjem. When the plan spoken that his severance container included $2. 2 million in payments unbefitting his 2007 employment agreement, state Mansion Democratic master Merle Boucher responded by proposing a bill that would have levied a 70 % tax on earnings of more than $1 million for not - for - profit CEOs. But Stomping grounds Republicans left the proposal, and the bill died.
Still, those amounts wan in comparison to the $15. 3 million Gail Boudreaux celebrated when wench empty her position as president of Melancholy Crotchety and Melancholy Bury of Illinois, a Health Care Service Corp. ( HCSC ) suitable. Boudreaux ' s resignation was announced a month after the company named Patricia Hemingway Entry CEO in November 2007.
Strategies on Compensation at Blues Plans
While HCSC spokesperson Ross Blackstone did not comment on the Boudreaux ' s severance container, he explains that its executive compensation " is a pay - for - performance plan " based on company discernment. The program " is designed to concede us to compete for and retain talented employees to lead our company and support our members with the best market price in products and services, " he adds.
Blackstone contends that the company and its Blues plans in Illinois, New Mexico, Oklahoma and Texas " have performed very well over the bygone several years. "
The compensation practice, he asserts, is reviewed annually " to arrange it ' s in line with our industry ' s expectations. And based on both independent analyses and our own analysis, our executive pay is well within the compensation levels of other executives in our industry. "
Other Blues plans, close as Excellus BlueCross BlueShield, are reducing executive salaries in 2009. In its 2008 results, the plan vocal CEO David Klein, who admitted total compensation of $2. 7 million in 2008, will be paid 25 % less in 2009. Other senior executives at the plan also will experience pay cuts this year. But " senior management executives close way appetition pay on a dally induction for multiple monastic years ' course, " the plan vocal. So " compensation reported for 2008 may have risen becoming to favorable progress in 2007 and earlier years. " The plan, which sagacious a snare loss for 2008, changed executive compensation as part of a exceptional elbow grease to rally financially in 2009.
Excellus spokesperson Jim Redmond furnished The AIS Report with a copy of the plan ' s executive compensation policy for 2009. The plan explains that executive compensation packages are unhesitating on a case - by - case commencement. And packages are designed without the ability to offer stock options, as for - assistance firms can. Excellus says senior executives are occupied to mix and stay with the company through a combination of long - term and short - term system - based incentives. The awards are hampered to goals, including financial stability and customer service, the company says.
The foodstuff ' s compensation committee is assigned to conduct " rigorous national reviews of executive compensation " for the CEO and other company leaders, according to Excellus. The committee also uses selection compensation information, " particularly among health plans of homogeneous size, and recommendations " from independent national compensation consultants, parallel as Mercer LLC and Watson Wyatt Worldwide, Inc., according to the plan. The committee reviews the recommendations, reports its findings to the board and asks for ratification. " No staff member, including the CEO, votes on the committee or the full board on executive compensation matters, " the plan says.
HMSA Freezes CEO ' s Salary
Hawaii Medical Service Association ( HMSA ) in its full - year 2008 results release verbal CEO Robert Hiam volunteered to freeze his base pay in 2009 at $1. 3 million, an ball game the board approved in light of the recession.
HMSA ' s compensation and human resources board committee determines executive compensation and looks at local and national companies with traits same to HMSA to help cinch the becoming level of pay. As with Excellus, a human resources consulting firm helps the committee place desired levels of executive compensation.
Performance incentives acknowledged by HMSA executives in 2008 are " based on skilful measures met for 2005, 2006 and 2007, " the company vocal.
Other Blues plans reducing executive compensation incorporate Downcast Touchy Downcast Not tell of Michigan ( BCBSMI ) and Depressed Irascible Moody Shelter of Massachusetts ( BCBSMA ). BCBSMA will reduce senior executive compensation by approximately 30 % to 50 % in 2009, with CEO Cleve Killingsworth getting a 50 % reduction in pay. The plan verbal this is part of a series of steps to reduce administrative spending. BCBSMI vocal that senior executives would take a 5 % annual honorarium cut and won ' t receive a 3. 8 % annual increase. BCBSMI says the 3. 8 % represents a freeze on executive honorarium for the second time in the gone three years. The plan is making the moves " to halfway offset projected losses on BCBSMI ' s individual health plans. "
A Comprehensive Guide to Managing Never Events and Hospital - Acquired Conditions
receive free reports
Hot Products
• AIS ' s Directory of Health Plans 2009
• The Aging of America: Implications for the Business of Health Care
• The Next Genesis of Disease Management: 2009 and Beyond
• Specialty Pharmacy: Stakeholders, Strategies and Markets 2009
• Health Plan Strategies for Charge - Based Benefit Design
• HSA Snapshot: Data, Trends and Projections
Best Sellers
• Health Plan Facts, Trends & Data 2008 - 2009
• Report on Patient Privacy
See full listing
of products at
AIS Marketplace
New on AISHealth. com: Upcoming Health Business Meetings & Health Business Job Openings