Blue Cross Blue Shield
Jump to Blue Cross Blue Shield : Alerts;
• According to the American Medical Association, Anthem BLue Cross Blue Shield processes information incorrectly 26 percent of the time, meaning 1 in 4 of claims filed may not be processed correctly.
• Several of the Blue Cross Blue Shield organizations have been criticized for their excessive executive severance packages.
• Blue Cross is being sued in New York for denying coverage to a lesbian spouse, which violates New York law.
-- Profile Updated 09/27/2010
About Blue Cross Blue Shield
Blue Cross Blue Shield is an association of 39 independent health insurance companies. These companies license the Blue Cross Blue Shield brand name. The association has been around for about 80 years. Their brands are some of the most recognized in the health insurance industry.
Blue Cross Blue Shield provides health insurance for about 100 million Americans, which is roughly one in three Americans. It is one of the largest employers in the United States. They have more contracts with hospitals and physicians than any other insurer, 90 percent of Hospitals and 80 percent of physicians. Currently they operate in more than 170 countries.
There are no known affiliates associated with Blue Cross Blue Shield .
Contact Blue Cross Blue Shield
Blue Cross Blue Shield
Chicago, Il 60601 USA
Ethics and Governance
Blue Cross Blue Shield is accused of keeping too much money in their bank account for unforeseen market conditions. “Stockpiling cash” has been at the expense of customers as they continue to increase premiums each year even though they are making a significant surplus.
-- The Consumerist, 07/22/2010
A security breach occurred at WellPoint Inc which revealed personal information for 470,000 customers. Some of the information exposed included medical records and credit card numbers. It is believed that these records were shown from October 2009 to March 2010. In 2008, 128,000 customers had information exposed.
-- The Consumerist, 06/29/2010
According to the American Medical Association, Anthem BLue Cross Blue Shield processes information incorrectly 26 percent of the time, meaning 1 in 4 of claims filed may not be processed correctly.
-- The Consumerist, 06/14/2010
WellPoint is being accused of trying to drop patients diagnosed with breast cancer to save the company money. WellPoint uses a computer system which recognizes people who have been diagnosed with breast cancer which then triggers an immediate fraud investigation. They then drop the member if they find any wrongdoing.
-- The Consumerist, 04/22/2010
Horizon Blue Cross Blue Shield of New Jersey is being sued by nurses for $4.5 million dollars in payments. The nurses claim that Horizon continually denies paying them their appropriate fees, and even at times withholds pay completely. They are seeking repayment for their lost fees.
-- nj.com, 03/22/2010
Several of the Blue Cross Blue Shield organizations have been criticized for their excessive executive severance packages. CareFirst Blue Cross Blue Shield’s Leon Kaplan was going to receive a post-termination payment of $6.7 million but it was reduced to $2.7 million after the Maryland Commissioner Ralph Tyler issued an order to have his severance reduced.
In 2008 CEO of the Vermont Blue Cross Blue Shield William Milnes Jr. received a retirement package totaling $7.2 million.
Gail Boudreaux of Illinois Blue Cross Blue Shield received a retirement package of $15.3 million after retiring from her position as President in 2007.
Senior Executives receive performance based incentive pay which is paid on a lag basis. Therefore an executives pay may increase in a given year because of past performance.
-- AIShealth.com, 05/04/2009
In 2009, former CEO Cleve Killingsworth of Blue Cross and Blue Shield Massachusetts received a 26 percent increase in his salary and bonus. This came at a time when the company reported a 49 percent decline in membership. His compensation was reported to be around $4.3 million making him the highest paid healthcare executive in Massachusetts.
Massachusetts Blue Cross Blue Shield seems to have inflated executive bonuses and compensation for board members, considering the healthcare provider is a non-profit.
-- Boston.com, 02/28/2009
When Van Faasen retired as CEO of Blue Cross and Blue Shield Massachusetts he received a $16.4 million retirement package, which is a large sum considering he worked for a non-profit organization. Even though he received a retirement package he didn’t leave the company completely, he just gave up his role as CEO but retained his position as Chairman.
In 2007 Van Faasen earned a salary of $500,000 and received performance based bonuses totaling $2.46 million.
-- Boston.com, 11/16/2007
Blue Cross Blue Shield of Western New York is being sued by the New York Civil Liberties Union after they refused to cover Jeanne Kornowicz and her spouse, with whom she married in 2005 in Canada. Their denial to cover a lesbian couple violates New York State Law.
-- New York Civil Liberties Union , 06/15/2010
The Human Rights Campaign gave Blue Cross Blue Shield of Florida and the Health Care Service Corp a 100 percent on their corporate equality index rating. North Carolina Blue Shield received a 90 percent rating and Wellpoint Inc received only a 32 percent rating. These scores are based on a company’s policies, training and management, and benefits to the gay, bi-sexual, lesbian, and transgender community.
-- Human Rights Campaign, 06/15/2010
Source URL: www.humanrightscampaign.com