Regence CEO takes a 40 percent pay cut while Clear One Health Plan executives saw their salaries soar last year
March 17, 2010 -- Many of Oregon’s health insurance executives took home lower paychecks last year, and Mark Ganz, CEO of Regence BlueCross BlueShield of Oregon, took the biggest hit.
His Oregon salary dropped by a whopping 40 percent, to $521,873 including benefits, while Regence’s membership (718,000 lives) stayed at nearly an all-time low, according to newly released year-end financial disclosure statements filed with the Oregon Insurance Division.
Ganz also receives compensation from Regence Group health plans in Idaho, Washington and Utah, which was not known at press time for 2009, though his Washington compensation last year alone topped $900,000
Perhaps not surprisingly, the executive team at for-profit Clear One Health Plans outdid all of its competitors. Not only will these executives benefit from the $46 million sale
of their health plan to PacificSource as stockholders, but their salaries grew at astronomical proportions.
Leading the way was Patricia Gibford, its founding president and CEO, who realized a huge 74 percent salary increase, earning $659,615 in 2009. She was closely followed by her second-in-command – Gunnar Hansen, CFO – whose salary grew by 78 percent, taking home $472,703.
Even Randy Cline, its former COO, who left Clear One last fall and is now the chief marketing officer at Willamette Dental, saw his salary grow by 71 percent, reaching $430,504.
Dr. Bart McMullan, former president of Regence BCBS of Oregon, was the only other health insurance executive in Oregon to surpass Gibford's salary increase. McMullan’s salary jumped 86 percent up to $1.4 million after presumably collecting deferred compensation upon his retirement.
David Ford, CEO of CareOregon, an Oregon Health Plan contractor which also has a Medicare Advantage Plan, realized a 13 percent increase, earning $434,487, including benefits, in 2009.
Other executive salary increases remained in the single digit column – Jack Friedman, CEO of Providence Health Plans (6 percent) at $511,626, Majd Fowzi El-Azma, CEO of LifeWise (4 percent) at $373,578 and Chris Ellertson, CEO of HealthNet (3 percent) at $257,111
Meanwhile, Regence’s CEO wasn’t the sole executive who brought home a smaller paycheck last year. Three of his colleagues suffered a similar plight -- among them, Andrew McCulloch, the regional president of Kaiser (-24 percent), who earned $525,533.
Next in line was Robert Gootee, CEO of ODS Health Plan and Oregon Dental Service who took home $373,578, which represented a 4 percent decrease. Finally Ken Provencher, CEO and president of PacificSource, saw his salary go down by 5 percent, earning $353,271. In 2008, Provencher was the only health insurance executive in Oregon
who lowered his salary.
All of these salary figures include benefits. What follows is a list of all the salaries of health insurance executives in Oregon, courtesy of the Oregon Insurance Division, along with a list of insurance board members and their compensation.
For a complete list of top executive compensation in an excel spreadsheet click here.
For related article on salaries reported last year click here.
For year-end financial statements click here.
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