Executive Compensation at the BCBS Association (2021)

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 36 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 36 voting members of the governing body, of whom 35 are independent, although there are 37 listed on the Form 990 (2021) of whom 28 (76%) are male while 9 (24%) are female.

In 2021, BSBSA reported total revenue of $780 million and expenses of $678 million with the two largest expenses reported to be fees for outside services (primarily consultants) and compensation for employees.

1,348 employees received $247 million in compensation, which equates to an average compensation of $183,000. However, only 915 employees (about 68%) received more than $100,000 in compensation with the 36 most highly compensated reported to be:

• $19,783,570:  Scott P Serota, President and CEO
• $ 3,366,266:  Jennifer Vachon, EVP, Admin Services, Chief of Staff
• $ 2,661,323:  Kim Keck, President and CEO
• $ 2,549,119:  Robert J Kolodgy Jr, EVP and CFO
• $ 1,361,591:  William S Nehs, SVP, General Counsel and Corporate Secretary
• $ 1,188,248:  Justine Handelman, SVP, Policy and Representation
• $ 1,164,410:  William A Breskin, SVP, Government Programs
• $ 1,132,980:   Kari J Hedges, SVP, Commercial Markets
• $   971,464:  Maureen E Sullivan, SVP, Chief Strategy Innovation
• $   801,945:  Terry Cooney, VP, Investment and NEBA
• $   773,745:  Kris O Haltmeyer, VP Legislative and Reg Policy
• $   727,147:  Lachlan Tidmarsh, SVP
• $   698,236:  Kathy Didawick, VP, Congressional Communication
• $   671,686:  John Banta, ED Venture Funds
• $   639,645:  Rich Cullen, VP, Inter-Plan Solutions
• $   633,217:  John Joyce, Jr, VP
• $   626,313:  Brad Lubrant, VP, Finance
• $   602,814:  Mark Talluto, VP, Strategy and Analytics
• $   602,106:  Reed Melton, VP, Clinical Operations
• $   591,417:  Melissa Rotunno, VP Deputy General Counsel Brand
• $   589,407:  Jeffrey Berta, ED, EIT Business Partner
• $   573,016:  Julie Koewler, VP, Brand Strategy
• $   544,260:  Naomi Aronson, ED, Clinical Evaluation and Innovation
• $   539,715:  Denise Schofield, ED, Clinical Operations
• $   510,365:  David Yoder, VP, Member Care Benefits
• $   479,788:  John Cerisano, VP, Federal Relations
• $   450,327:  Sean Robbins, EVP
• $   394,189:  James Barkach, Executive Director
• $   392,641:  Jennifer Atkins, VP Network Solutions
• $   369,758:  Jill Klein, Executive Director
• $   365,197:  Nisha K Lulla, VP, Office of the President
• $   351,221:  Rebecca D’Amico, VP
• $   541,817:  Kelly Williams, VP, Human Resources
• $   442,265:  Eric Wilkerson, VP
• $   303,525:  Anshuman Choudhri, VP
• $   276,280:  Adam Myers, SVP and CCTO

The most highly compensated employee was Scott Serota, the CEO and President who received $20 million in 2021 and $74 million from 2015-2021.  The 10 most highly compensated employees received $35 million in  2021.

The 10 most highly compensated employees in 2021 (note: highly compensated employees in 2015-2020 but not in 2021 do not appear on the list below) received $128 million from 2015-2021:

Scott Serota  Total Compensation:  2015-2021:  $74 million

• 2021:  $19,783,570
• 2020:  $10,804,304
• 2019:  $11,251,751
• 2018:  $10,665,097
• 2017:  $ 8,810,848
• 2016:  $ 6,535,237
• 2015:  $ 5,871,190

Jennifer Vachon:  Total Compensation:  2015-2021:  $10 million

• 2021:  $3,366,266
• 2020:  $1,710,085
• 2019:  $1,315,8903
• 2018:  $1,195,758
• 2017:  $  984,765
• 2016:  $  813,173
• 2015:  $  670,352

Kim Keck:  Total Compensation 2021:  $2.7 million

• 2021:  $ 2,661,323

Robert Kolodgy, Jr:  Total Compensation 2015-2021:  $9 million

• 2021:  $2,549,119
• 2020:  $1,149,010
• 2019:  $1,096,507
• 2018:  $1,103,132
• 2017:  $1,023,465
• 2016:  $  893,839
• 2015:  $  808,283

Justine Handleman:  Total Compensation. 2015-2021:  $6 million

• 2021:  $1,188,248
• 2020:  $1,028,981
• 2019:  $  901,865
• 2018:  $  848,576
• 2017:  $  639,307
• 2016:  $  525,715
• 2015:  $  525,943

Kari Hedges:  Total Compensation 2015-2021:  $6 million

• 2021:  $1,132,980
• 2020:  $1,027,685
• 2019:  $  906,927
• 2018:  $  792,263
• 2017:  $  745,885
• 2016:  $  560,023
• 2015:  $  487,450

William Nehs:  Total Compensation 2019-2021:  $3 million

• 2021:  $1,361,591
• 2020:  $  807,882
• 2019:  $  767,906

William Breskin:  Total Compensation. 2015-2021:  $6 million

• 2021:   $1,164,410
• 2020:  $1,061,632
• 2019:  $  845,519
• 2018:  $  872,854
• 2017:  $  820,175
• 2016:  $  942,615
• 2015:  $  638,850

Maureen Sullivan:  Total Compensation. 2015-2021:  $6 million

• 2021:  $971,464:
• 2020:  $863,142
• 2019:  $850,495
• 2018:  $847,432
• 2017:  $827,810
• 2016:  $880,948
• 2015:  $886,643

Terry Cooney:  Total Compensation  2015-2021:  $5 million

• 2021:  $801,945
• 2020:  $830,444
• 2019:  $765,815
• 2018:  $764,386
• 2017:  $716,213
• 2016:  $552,684
• 2015:  $475,435

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.

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

• $28 million:  UST Global, of Aliso Viej0, CA for info technology
• $18 million:  Infosys Public Services, of Rockville, MD for business consulting
• $11 million:  Kirkland Ellis, of Chicago, IL for legal services
• $11 million:  Tech Mahindra Technologies, of South Plainfield, NJ for info technology
• $11 million:  Allegeus Technologies, of Waltham, MA for info technology

To read the IRS Form 990 (2021), click here.