Blue Cross Blue Shield of Massachusetts will repay its 1 million customers the $4.26 million it paid former CEO Cleve Killingsworth in severance in 2010, according to a Boston Herald report.
The $4.26 million severance was part of a total $11 million package the company paid its former leader. In addition, Blue Cross directors received up to $80,000 a year in compensation. However, a report by Attorney General Martha Coakley showed the directors were concerned about "financial losses, lack of focus on operational issues, decline in member satisfaction scores, staff morale and the amount of time spent on new initiatives," according to the Boston Herald. The directors' pay has since been suspended.
Mr. Killingsworth's pay for his five years at the helm of Blue Cross was based on self-evaluations that contained essentially no critical comments, though the company started to lose millions of dollars.
Read the Boston Herald report on Blue Cross Blue Shield of Massachusetts.
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The $4.26 million severance was part of a total $11 million package the company paid its former leader. In addition, Blue Cross directors received up to $80,000 a year in compensation. However, a report by Attorney General Martha Coakley showed the directors were concerned about "financial losses, lack of focus on operational issues, decline in member satisfaction scores, staff morale and the amount of time spent on new initiatives," according to the Boston Herald. The directors' pay has since been suspended.
Mr. Killingsworth's pay for his five years at the helm of Blue Cross was based on self-evaluations that contained essentially no critical comments, though the company started to lose millions of dollars.
Read the Boston Herald report on Blue Cross Blue Shield of Massachusetts.
Related Articles on Payors:
Blue Cross and Blue Shield of Nebraska Pays for Two Hospitals to Participate in Improvement Programs
MCCI to Open Four Primary Care Clinics in Florida for Humana Patients
BCBS Parent Doubles Profits Since 2009 as Premiums Increase