After an internal examination, Blue Cross Blue Shield of Massachusetts will remain a non-profit public charity even though its revenues and compensation packages have stirred controversy, according to a Boston Globe report.
BCBS of Massachusetts, the state's largest health insurer and the only health plan in the nation classified as a public charity, decided to keep its public charity status after consulting with 50 community leaders, according to the report. Ultimately, it wanted to retain its focus on reducing healthcare costs, and the insurer said a change in its legal classification would be a time-consuming affair that would take away from that focus.
Outcry for the insurer to change was fueled by BCBS of Massachusetts' $11 million payout to former CEO Cleve Killingsworth, the report said. Additionally, it gave tens of thousands of dollars in compensation to its board of directors, but that practice has since been suspended.
Partners HealthCare, Insurers Negotiate Global Payments
The Quiet Takeover: Insurers Buying Physicians and Hospitals
BCBS of Massachusetts, the state's largest health insurer and the only health plan in the nation classified as a public charity, decided to keep its public charity status after consulting with 50 community leaders, according to the report. Ultimately, it wanted to retain its focus on reducing healthcare costs, and the insurer said a change in its legal classification would be a time-consuming affair that would take away from that focus.
Outcry for the insurer to change was fueled by BCBS of Massachusetts' $11 million payout to former CEO Cleve Killingsworth, the report said. Additionally, it gave tens of thousands of dollars in compensation to its board of directors, but that practice has since been suspended.
Related Articles on Blue Cross Blue Shield of Massachusetts:
Partners HealthCare, BCBS Massachusetts Finalize Agreement to Reduce Payments by $240M Over 3 YearsPartners HealthCare, Insurers Negotiate Global Payments
The Quiet Takeover: Insurers Buying Physicians and Hospitals