Blues earnings stand still
Group’s net income holds at $23 million, total revenue hits $420 million
Earnings for the Blue Cross and Blue Shield Association, which represents Blues health plans, were flat in 2009, and overall compensation for the group’s chief executive dropped by nearly $1 million.
The Blue Cross and Blue Shield Association posted total revenue of $420 million last year, up from about $411 million in 2008, according to its 2009 Internal Revenue Service Form 990.
Expenses also rose to a total of $397 million, compared to almost $388 million the year prior. The group’s net income was $23 million last year, the same as in 2008, according to the tax filing with the IRS.
The Chicago-based group earned $982,000 on investment income in 2009, down significantly from investment income of $6.8 million in 2008, according to the filing.
Association officials could not comment by deadline.
Major programs included BlueCard, a clearinghouse that allows Blues plan members to receive care in another plan’s service area at similar rates. Revenues for the program were $118 million last year, with expenses of $111 million. The association said participating Blues plans saved more than $64 billion in provider discounts through the program last year, an increase of 13% since 2008, according to the filing.
Scott Serota, president and CEO of the association, earned $3.2 million in 2009 in total compensation, down from $4 million in 2008.
Serota earned about $856,000 in base salary last year, plus nearly $1.6 million in bonus and incentives, just under $548,000 in other compensation, and about $239,000 in retirement and deferred compensation and other non-taxable benefits. In 2008, Serota earned about the same salary and benefits, plus $1.3 million in deferred compensation. The second-highest paid executive at the Blues association last year was Allan Korn, senior vice president and chief medical officer, who earned a total of $822,000, according to the Form 990 IRS filing.
The group gave $10,000 to the Republican State Leadership Committee and $25,000 each to the Republican Governors Association and the Democratic Governors Association. It reported $360,000 in political expenditures in 2009. The Blue Cross and Blue Shield Association represents 39 Blues plans nationwide.
Serota earned nearly $1.6 million in bonus and incentives in 2009.