Blue Cross Blue Shield of Massachusetts Returns $4.26 Million to Customers
As a good faith gesture, BCBS is issuing a one time credit to customers after the resignation of the CEO.
Attorney General Martha Coakley announced that Blue Cross Blue Shield (BCBS) will return $4.26 million to its policyholders. The decison was announced based upon an investigation into the resignation of Cleve Killingsworth, formerly the CEO of BCBS, who received the sum as part of a hefty severance package.
Killingsworth resigned shortly after the company posted a loss of $149 million and a loss of 89,000 subscribers.
“Our investigation found that Mr. Killingsworth was contractually guaranteed to a significant payment upon his termination unless his removal was a result of intentional misconduct,” AG Coakley said. “The board has made the right decision to rebate this money because we did not believe customers should have to foot the bill for this severance amount. I want to thank CEO Andrew Dreyfus and the Board for their cooperation during this process.”
The payment, which amounts to approximately $3.00 per subscriber, will appear as a credit on employer’s November 2011 invoices.Button Text.