Executive Compensation at the BCBS Association

The Blue Cross Blue Shield Association (BCBSA) is a tax-exempt, non-profit 501 (c) 4 (a social welfare organization) based in Chicago, Illinois that serves as a national association of 34 independent BCBS companies that provide health insurance to more than 115 million people.

BCBSA also own and manage the BCBS trademarks and names in more than 170 countries around the world.  Consequently, revenue comes from the members of BCBSA whose revenue comes from insurance premiums. In other words, part of your BCBS health insurance premiums are paid to BCBSA.

There are 37 voting members of the governing body, of whom 36 are independent, although there are 43 listed on the Form 990 (2019) of whom 35 (81%) are male while 8 (19%) are female.

In 2019, BSBSA reported total revenue of nearly $700 million with expenses of about $650 million with the two largest expenses reported to be fees for outside services (primarily consultants) and compensation for employees. 1,494 employees received $226 million in compensation, which equates to an average compensation of $151,000. However, only 887 employees (about 60%) received more than $100,000 in compensation with the 36 most highly compensated reported to be:

• $11,251,751:  Scott P Serota, President and CEO
• $ 1,315,803:  Jennifer Vachon, EVP, Admin Services, Chief of Staff
• $ 1,096,507:  Robert J Kolodgy Jr, EVP and CFO
• $  906,927:   Kari J Hedges, SVP, Commercial Markets
• $  901,865:  Justin Handelman, SVP, Policy and Representation
• $  850,495:  Maureen E Sullivan, SVP, Chief Strategy Innovation
• $  845,519:  William A Breskin, SVP, Government Programs
• $  828,023:  John Banta, ED Venture Funds
• $  803,268:  Kathy Didawick, VP, Congressional Communication
• $  767,906:  William S Nehs, SVP, General Counsel and Corporate Secretary
• $  765,815:  Terry Cooney, VP, Investment and NEBA
• $  764,101:  Peter Naumovski, VP Chief Information Security Officer
• $  754,679:  Trent T Haywood, SVP, Chief Medical Officer
• $  702,021:  Kris O Haltmeyer, VP Legislative and Reg Policy
• $  646,266:  John Cerisano, VP, Federal Relations
• $  557,911:  Mike Joyce, VP, Chief Auditor and Compliance
• $  498,549:  Jeffrey Berta, ED, EIT Business Partner
• $  488,580:  Denise Schofield, ED, Clinical Operations
• $  487,209:  Brad Lubrant, VP, Finance
• $  486,451:  Mark Talluto, VP, Strategy and Analytics
• $  485,969:  Reed Melton, VP, Clinical Operations
• $  485,928:  Julie Koewler, VP, Brand Strategy
• $  477,872:  Melissa Rotunno, VP Deputy General Counsel Brand
• $  477,584:  Paul Gerrard, VP, Strategic Communications
• $  454,812:  Jennifer Atkins, VP Network Solutions
• $  447,179:  Rich Cullen, VP, Inter-Plan Solutions
• $  439,029:  Doughton Lawrence, ED, Enterprise Program
• $  433,519:  Naomi Aronson, ED, Clinical Evaluation and Innovation
• $  428,615:  David Yoder, VP, Member Care Benefits
• $  393,350:  Nisha K Lulla, VP, Office of the President
• $  388,274:  Vincent Nelson, VP, Medical Affairs
• $  376,073:  Ngan McDonald, VP, Enterprise Data Solutions
• $  352,252:  Patrick Pope, VP, Deputy General Counsel
• $  334,476:  Kelly Williams, VP, Human Resources
• $  294,067:  Kim D Holland, VP, State Affairs
• $  276,467:  Blake Wilkerson, VP, Strategic Partnerships

The most highly compensated employee was Scott Serota, the CEO and President who received more than $11 million in 2019 and $43 million the past 5 years:

• 2019:  $11,251,751
• 2018:  $10,665,097
• 2017:  $ 8,810,848
• 2016:  $ 6,535,237
• 2015:  $ 5,871,190

BSBSA paid for first class or charter travel, health or social club dues or initiation fees, and gross up payments and tax indemnification.  For details on these expenses, see the Form 990, Schedule J, Part III, Supplemental Information.

161 independent contractors received more than $100,000 in compensation with the five (5) most highly compensated reported to be:

• $19.4 million:  Kirkland Ellis, of Chicago, IL for legal services
• $13.9 million:  Infosys Public Services, of Rockville, MD for business consulting
• $12.4 million:  Worldwide Insurance Services, of Radnor, PA for international medical insurance
• $ 9.8 million:  Beeline Settlement Company, of Jacksonville, FL for workforce staffing
• $ 9.5 million:  Health Intelligence Co, of Chicago, IL for data analytics

To read the IRS Form 990 (2019), click here.