Vague explanation not enough
Harvard Pilgrim customers and the state’s taxpayers deserve a better explanation for why CEO Eric Schultz has suddenly quit.
Citing unspecified “behavior” is not enough. Not even close.
Harvard Pilgrim is a nonprofit behemoth, tightly regulated by the state’s Division of Insurance and the attorney general’s office.
There’s a reason why Harvard Pilgrim and other health insurance firms are forced to disclose all their financial information to the public. These firms serve a critical public function.
Its customers, some of them forced to pony up big money for monthly premiums because of the state-mandated health insurance law, need more than just a vague explanation why the CEO has suddenly fled. These questions deserve answers: • Did Schultz violate any state laws?
• How much of a severance did he walk away with out the door?
• Is there a pending investigation into Schultz’s improper actions?
• Was its related to sexual harassment?
This last question is important, because right now many people are wondering whether Schultz is the latest casualty of the #MeToo movement. But we don’t know that. And if not that, was there some professional impropriety we should know about?
We don’t really know anything at this point, beyond a few vaguely worded statements.
“Regrettably, I recently exhibited behavior that was inconsistent with my personal core values and the company’s core values and code of conduct,” Schultz said in a letter to Harvard Pilgrim’s board of directors and employees. “I made mistakes and I’m truly sorry.”
Schultz got more than $2 million in salary in 2016, according to public documents.
Attorney General Maura Healey should demand more answers. Gov. Charlie Baker should demand more answers.
Baker especially is aware of the public imperative of transparency when it comes to health insurance companies. He served as Harvard Pilgrim CEO before Schultz took over in 2010, when Baker launched his campaign for governor.
But so far, nothing from Healey or Baker. Just silence.
“It’s about being transparent,” said Toni Troop, head of an organization that provides services to victims of sexual harassment and abuse. “There are a lot of stakeholders in this.”
Troop is right — a health insurance company like Harvard Pilgrim has a big role in many people’s lives and they all deserve more than just vague, self-serving statements and apologies.