Massachusetts Senate Limits Non-Profit Board Member Compensation

The Massachusetts Senate has passed legislation limiting the compensation for board members of non-profit organizations, which include several large health insurers in the state, according to an Epoch Times report.

The legislation would require non-profits to justify payment to board members, as most non-profits do not compensate their boards.

The Massachusetts attorney general's office began to investigate board compensation in Nov. 2009. The office focused on healthcare organizations because of the rising cost of healthcare. Since then, Blue Cross Blue Shield and Fallon have suspended payments to board members, while Harvard Pilgrim and Tufts have continued payments, citing their need for more complex and highly skilled directors.

"I think the hybrid is dangerous when the business or the entity is operating a private business model, yet receiving all of the benefits of the non-profit," said State Sen. Mark Montigny, chairman of the Health Care Committee.

Read the Epoch Times report on Massachusetts legislation to limit compensation of non-profit healthcare providers.

Related Articles on Healthcare Compensation:

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Hospital CEO's Supplemental Retirement Pay Under Fire in California

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