LOS ANGELES (KNX1070) — Blue Shield of California came under sharp criticism last month when it revealed that its CEO, Bruce Bodaken, earns four times that of an average non-profit California insurer.
KNX 1070’s Brian Ping reports that the company says it’ll cap its earnings at two percent of revenue, with the balance returned to customers and care providers.
“While I appreciate the company’s decision to return some of that money, I think many Californians would ask why isn’t it all being returned – particularly when they have $3.5 billion in reserves,” State Insurance Commissioner Dave Jones said.
The cap will amount to a $167 million dollar reimbursement, most of which will go to those who hold non-employer policies.
Senators are taking up a bill just passed by the Assembly that would require a state regulator to sign off on proposed premium increases.