If large nonprofit health insurer Blue Shield of California thought it was a good idea not to tell state regulators the identifies of some of the executives who received an eye-popping 64 percent compensation hike in 2012, it might want to think again.
California Insurance Commissioner Dave Jones is now investigating issues surrounding $24 million in increased executive compensation payments that year, which were revealed by the Los Angeles Times after its review of a confidential state audit.
Blue Shield's failure to disclose in a 2013 regulatory filing how much then-CEO Bruce Bodaken and other executives who left the insurer in 2012 received, "raises very serious and troubling questions with regard to whether Blue Shield misled the Department of Insurance," Jones told the Times.
His scrutiny of Blue Shield comes six months after it was first publicly revealed that the California Franchise Tax Board had revoked the insurer's state tax exemption.
That revocation followed the confidential audit, whose authors "criticized the insurer for stockpiling 'extraordinarily high surpluses' of $4 billion and for failing to offer more affordable coverage as a nonprofit," according to the Times. Blue Shield is now appealing that decision.