Executive Compensation at Priority Health (2018)

Priority Health (PH) is a tax-exempt, non-profit health insurer with a million members throughout Michigan. With three shareholders (Spectrum Health System (93.3%), Munson Healthcare (5.5%), and McLaren Northern Michigan (0.6%), PH reports having no employees although the organization is staffed with employees at Spectrum Health System who are leased back to PH. Compensation is allocated to PH via a management fee. However, the 21 most highly compensated employees (note:  part or all of compensation is paid by Priority Health and/or an affiliated/related organization including Spectrum Health System) are listed on Schedule J of the Form 990 and are reported as follows:

• $4,810,913:  Richard Breon, Director, Part Year
• $3,933,085:  Michael P Freed, Former President and CEO
• $2,993,236:  Christina Freese Decker, Director
• $2,273,205:  Joan A Budden, President and CEO
• $1,907,462:  Seth Wolk, Director, Part Year
• $1,296,243:  Pamela Ries, Former VP, System Total Value
• $  827,315:  Mary Anne Jones, Treasurer and SVP, Finance
• $  763,964:  Michael Koziara, SVP, Provider Network
• $  733,3015:  Jianhua Yu, SVP, Advanced Analytics/Chief Actuary
• $  732,771:  Michael Vrendenberg, Director
• $  721,006:  Kimberly L Thomas, Secretary
• $  695,358:  Marti Lolli, SVP Cons/Gov’t Marketing and CMO
• $  690,348:  James Forshee, SVP, Chief Medical Officer
• $  686,145:  Jay Labine, Former SVP, Chief Medical Officer
• $  564,673:  John L Fox, VP, Assoc Chief Medical Officer
• $  541,532:  Christopher Crook, SVP, Information Services
• $  527,767:  Rick Morrone, SVP, Employer Solutions
• $  506,109:  Eugene Cronin, VP, New Gov’t Markets
• $  495,402:  Ines Vigil, VP, Advanced Analytics
• $  459,670:  Sherwin Robinson, VP, Chief Underwriter
• $  451,461:  Brian Krupiczewicz, SVP, Human Resources

13 of the 21 (62%) most highly compensated employees are male while 8 of the 21 (38%) are female.

PH paid for health club dues for 10 executive employees.

PH has a supplemental non-qualified retirement plan:

• $3,933,085:  Michael Freed
• $2,294,061:  Richard Breon
• $  807,444:  Christina Freese Decker
• $  602,765:  Seth Wolk
• $  576,734:  Joan Budden
• $  323,331:  Pamela Ries
• $   52,068:  Jay Labine
• $   46,866:  Mary Anne Jones
• $   44,363:  Jianhua Yu
• $   41,606:  Eugene Cronin
• $   40,783:  Kimberly Thomas
• $   34,405:  Marti Lolli
• $   32,046:  Sherwin Robinson
• $   27,429:  Michael Koziara
• $   27,252:  Inis Vigil
• $   14,852:  Brian Krupiczewicz

Michael Vredenburg, a director, received a loan in the amount of $27,000 for tuition assistance. The balance due is $13,586.  It is unclear why a director who was compensated more than $700,000 in 2018 needed a $27,000 loan for tuition assistance.

Transactions with Interested Persons include:

• Wendy Walker, a board member owning more than 35% of an entity (Physician Support Services) doing business (purchasing health insurance from PH for $309,925).
• Michael Breon, son of Richard Breon, a part-year member of the board of directors, received $180,164 as compensation for employment.
• Matthew Koziara, son of Michael Koziara, a key employee, received $51,102 as compensation for employment.
• Molly Stephanak, daughter of James Stephanie, a board member, received $26,675 as compensation for employment.

To read the IRS Form 990 (2018) for PH, click here.