When you hear health insurers complain about the burdens and the lost revenue they'll be facing under the Affordable Care Act, keep this story in mind.
Cleve L. Killingsworth, who abruptly resigned last March as chief executive of the nonprofit Blue Cross Blue Shield of Massachusetts, collected $8.6 million in compensation from the state’s largest health insurer in 2010.
The rich package — which included $1.4 million in severance pay, with more money to follow — was detailed in a Blue Cross filing with the state Division of Insurance yesterday. It touched off a volley of criticism at a time when government and business officials, including Blue Cross’s leaders, have been struggling to restrain health care costs....
Public interest advocates, pay specialists, and insurance customers were quick to call Killingsworth’s payout excessive.
“It sends the wrong message at the wrong time to consumers and employers,’’ said Jon B. Hurst, president of the Retailers Association of Massachusetts. “We’ve gone through years and years of double-digit premium increases. We need the health care industry in this state to start reflecting the rest of the economy.’’
Um, yeah, it pretty much does send the wrong message.
(Additional discussion about astronomical CEO retirement packages in the health insurance industry is going on in teacherken's diary.)