The company came under fire for paying its CEO $4.6 million a year while Blue Shield of California raised health insurance premiums. Blue Shield has promised to limit profits to 2 percent of revenue and to use any income above 2 percent for the benefit of its policyholders and the general public.
According to the report, Blue Shield of California will apply the new policy beginning with its 2010 income. The company’s net income last year exceeded the 2 percent target by $180 million; therefore, the company will give back $167 million to policyholders, $10 million to physicians and hospitals that invest in ACOs and $3 million to the Blue Shield of California Foundation.
Read the Arkansas Reporter article on Blue Shield of California.
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