Executive Compensation at the BCBS Association (2023)

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 34 voting members of the governing body, of whom 33 are independent, although there are 36 listed on the Form 990 (2023) of whom 26 (72%) are male while 10 (28%) are female.

In 2023, BSBSA reported total revenue of $819 million  (the average independent BCBS company pays about $23 million in various fees to the BCBSA annually) and expenses of $798 million with the two largest expenses reported to be fees for outside services (primarily consultants) and compensation for employees.

1,363 employees (20 less than in 2022) received $273 million ($20 million more than in 2022) in compensation, which equates to an average compensation of $200,000. However, only 1,052 employees (about 77%) received more than $100,000 in compensation with the 38 most highly compensated reported to be:

• $6,041,415 :  Kim Keck, President and CEO
• $2,125,750:  Jennifer Vachon, EVP, Admin Services, Chief of Staff
• $1,720,410:  Sean Robbins, EVP
• $1,318,553:   Kari J Hedges, SVP, Commercial Markets
• $1,221,636:  Lachlan Tidmarsh, SVP
• $1,191,083:  William S Nehs, SVP, General Counsel and Corporate Secretary
• $1,137,899:  Christina Fisher, EVP
• $1,042,374:  John Banta, ED Venture Funds
• $1,033,098:  Adam Myers, SVP and CCTO (end 4/23)
• $  893,561:  Lynn Merritt, SVP, Chief HR Officer
• $  819,664:  Christopher Lugo, VP, Chief Info Security Officer
• $  806,782:  Mark Talluto, VP, Strategy and Analytics
• $  705,870:  David Merritt, SVP, Policy and Advocacy
• $  693,434:  David Yoder, VP, Member Care Benefits
• $  625,875:  Kelly Williams, VP, Human Resources
• $  619,831:  Kris O Haltmeyer, VP Legislative and Reg Policy
• $  610,640:  Rich Cullen, VP, Inter-Plan Solutions
• $  595,938:  Erin Barney, VP
• $  570,503:  Eric Wilkerson, VP
• $  561,249:  Anurag Voleti, VP (end 12/23)
• $  556,306:  Keysha  Brooks-Coley, VP
• $  533,131:  Katie McBreen, VP
• $  513,807:  Melissa Rotunno, VP Deputy General Counsel Brand
• $  512,723:  John Joyce, Jr, VP
• $  468,637:  Rebecca D’Amico, VP
• $  466,169:  Brad Lubrant, VP, Finance
• $  465,930:  William A Breskin, SVP, Government Programs (end 12/22)
• $  459,084:  Reed Melton, VP, Clinical Operations (end 12/23)
• $  445,806:  Anshuman Choudhri, VP
• $  387,834:  James Barkach, Executive Director
• $  386,165:  Denise Schofield, ED, Clinical Operations
• $  380,311:  Patricia Taylor, Executive Director
• $  373,272:  Darin Rothert, Ed FEP Program Integrity
• $  361,795:  Catherine Leventis, Chief Growth Officer
• $  302,003:  Sondra Imperai, VP
• $  255,699:  Maureen E Sullivan, Former SVP, Chief Strategy Innovation
• $  249,544:  Jeffrey Berta, ED, EIT Business Partner (end 1/23)
• $  245,254:  Brian Bauer, VP APP Solutions (start 7/23)

The most highly compensated employee was Kim Keck, the President and CEO who received $6 million in 2023.

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.

170 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
• $32 million: Cavath Swain Moore, of NY, NY for legal services
• $18 million:  Infosys Public Services, of Rockville, MD for business consulting
• $12 million:  Beeline Settlement Company, of Jacksonville, Florida for vendor management system
• $10 million:  Tech Mahindra Technologies, of South Plainfield, NJ for info technology

To read the IRS Form 990 (2023), click here.