Blue Cross of Montana execs’ pay dwarfed by compensation at potential buyer – Montana officials not yet convinced on Blue Cross merger

Blue Cross and Blue Shield of Montana’s top executives received big bonuses in 2012 – but their payments are chicken feed compared to bonuses paid to executives that run the health care giant planning to buy Blue Cross.

And, if the merger goes forward, 2012 could be the last year that Montana Blue Cross policyholders get to know how much Blue Cross of Montana pays its top executives.

Mike Frank, the CEO and president of Blue Cross of Montana, had $635,000 in total compensation for 2012, according to records filed with the state, including a $213,000 bonus.

Blue Cross of Montana reported $10 million in underwriting losses last year – a year after having $5.4 million in losses.

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Montana officials not yet convinced on Blue Cross merger

State insurance officials said this week they’re not yet convinced the proposed merger of Blue Cross Blue Shield of Montana with an Illinois health insurance giant is good for Montana consumers – and are asking the companies for commitments that might change their mind.

“Our concern is, how does this benefit the consumer?” said Jesse Laslovich, chief counsel for state Auditor Monica Lindeen, who is Montana’s insurance commissioner.

While the companies have stated how they think the merger would strengthen Blue Cross and thus indirectly benefit customers, Lindeen’s office wants more assurances of direct benefits for consumers, he said.

Full Story: http://www.ravallirepublic.com/news/state-and-regional/article_6a8c24e4-39a7-5ef6-806c-bb6fa52c85bf.html