In response to mounting criticism, Blue Shield of California’s chief executive is vowing to improve the nonprofit insurer’s poor ratings from patients and to disclose more about executive compensation.
But CEO Paul Markovich warned that certain details on executive pay will remain secret, portending a potential showdown with regulators.
Markovich has been dogged by questions for months surrounding the insurance giant’s nonprofit status, lack of transparency and repeated rate increases despite holding $4.2 billion in reserve.
The 48-year-old CEO cleared one major hurdle this month when state officials approved his $1.2-billion acquisition of Care1st Health Plan, a Medicaid insurer based in Monterey Park.
Auditors said the company didn’t deserve the lucrative tax break because of its excessive surplus and the failure to provide lower-cost coverage or other substantial community benefits.