Executive Compensation at the BCBS Association (2022)

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 (2022) of whom 28 (76%) are male while 9 (24%) are female.

In 2022, BSBSA reported total revenue of $756 million  (the average independent BCBS company pays about $20 million in various fees to the BCBSA annually) and expenses of $678 million with the two largest expenses reported to be fees for outside services (primarily consultants) and compensation for employees.

1,383 employees received $252 million in compensation, which equates to an average compensation of $182,000. However, only 930 employees (about 67%) received more than $100,000 in compensation with the 38 most highly compensated reported to be:

• $3,986,239 :  Kim Keck, President and CEO
• $2,989,596:  Maureen E Sullivan, SVP, Chief Strategy Innovation
• $2,881,37o :  Jennifer Vachon, EVP, Admin Services, Chief of Staff
• $1,406,193:  Justine Handelman, SVP, Policy and Representation
• $ 1,160,347:  Sean Robbins, EVP
• $1,081,625:   Kari J Hedges, SVP, Commercial Markets
• $1,005,844:  Adam Myers, SVP and CCTO
• $1,001,831:  William A Breskin, SVP, Government Programs
• $  984,432:  Christopher Lugo, VP, Chief Info Security Officer
• $  942,156:  William S Nehs, SVP, General Counsel and Corporate Secretary
• $  794,978:  Lachlan Tidmarsh, SVP
• $  724,943:  John Banta, ED Venture Funds
• $  696,339:  Christina Fisher, EVP
• $  687,387:  Kelly Williams, VP, Human Resources
• $  683,669:  Kris O Haltmeyer, VP Legislative and Reg Policy
• $  658,073:  Mark Talluto, VP, Strategy and Analytics
• $  636,103:  Rich Cullen, VP, Inter-Plan Solutions
• $  612,527:  Jeffrey Berta, ED, EIT Business Partner
• $  604,291:  Terry Cooney, VP, Investment and NEBA
• $  555,165:  David Yoder, VP, Member Care Benefits
• $  546,515:  Julie Koewler, VP, Brand Strategy
• $  532,143:  Melissa Rotunno, VP Deputy General Counsel Brand
• $  512,165:  Robert J Kolodgy Jr, EVP and CFO
• $  506,650:  John Joyce, Jr, VP
• $  503,324:  Brad Lubrant, VP, Finance
• $  495,326:  Reed Melton, VP, Clinical Operations
• $  460,522:  Katie McBreen, VP
• $  457,751:  Eric Wilkerson, VP
• $  417,431:  Denise Schofield, ED, Clinical Operations
• $  416,917:  James Barkach, Executive Director
• $  401,429:  Erin Barney, VP
• $  384,745:  Lynn Merritt, SVP, Chief HR Officer
• $  380,666:  Naomi Aronson, ED, Clinical Evaluation and Innovation
• $  376,433:  Rebecca D’Amico, VP
• $  371,827:  Jill Klein, Executive Director
• $  362,479:  Anshuman Choudhri, VP
• $  354,426:  Patricia Taylor, Executive Director
• $  306,315:  Keysha  Brooks-Coley, VP

The most highly compensated employee was Kim Keck, the President and CEO who received $4 million in 2022.

The 10 most highly compensated employees in 2022 (note: highly compensated employees in 2015-2021 but not in 2022 – including Scott Serota the former CEO and President who received $74 million from 2015-2021 – do not appear on the list below) received $58 million from 2015-2022:

Jennifer Vachon:  Total Compensation:  2015-2022:  $13 million

• 2022:  $2,881,370
• 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 2021-2022:  $7 million

• 2022:  $3,986,239
• 2021:  $ 2,661,323

Justine Handleman:  Total Compensation. 2015-2022:  $7 million

• 2022:  $1,406,193
• 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 2015-2022:  $7 million

• 2022:  $1,081,625
• 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 2019-2022:  $4 million

• 2022:  $  942,156
• 2021:  $1,361,591
• 2020:  $  807,882
• 2019:  $  767,906

William Breskin:  Total Compensation. 2015-2022:  $7 million

• 2022:  $1,001,831
• 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. 2015-2022:  $9 million

• 2022:  $2,989,596
• 2021:  $  971,464:
• 2020:  $  863,142
• 2019:  $  850,495
• 2018:  $  847,432
• 2017:  $  827,810
• 2016:  $  880,948
• 2015:  $  886,643

Sean Robbins:  Total Compensation  2021-2022:  $1.6 million

• 2022:  $1,160,347
• 2021:  $  450,327

Adam Myers:  Total Compensation  2021-2022:  $1.3 million

• 2022:  $1,005,844
• 2021:  $  276,280

Christopher Lugo:  Total Compensation  2022:  $1 million

• 2022:  $984,432

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.

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

• $40 million:  UST Global, of Aliso Viej0, CA for info technology
• $18 million: Cavath Swain Moore, of NY, NY for legal services
• $18 million:  Infosys Public Services, of Rockville, MD for business consulting
• $12 million:  Tech Mahindra Technologies, of South Plainfield, NJ for info technology
• $  9 million:  Worldwide Insurance Services, of Radnor, PA for internal medicine insurance

To read the IRS Form 990 (2022), click here.