Blue Cross Bonuses Amid Job Cuts, Proposed Rate Hike

By: Associated Press
By: Associated Press

Blue Cross Blue Shield of Michigan has awarded bonuses to about 4,000 nonunion employees for reaching targeted performance goals last year.

The Detroit News reported Thursday it obtained a May 18 memo to employees from CEO Daniel Loepp that detailed the bonuses.

Word of the bonuses comes as the Detroit-based nonprofit health insurer plans to cut 1,000 jobs this year and has proposed rate increases for plans covering about 400,000 people who buy their own policies.

Blue Cross said the incentive pay, which is a percentage of a worker's base salary, is intended to reward workers for meeting business targets established in 2007 by the insurer's board.

Blue Cross spokesman Andy Hetzel said incentive pay helps to keep workers engaged and motivated.

Hetzel noted that nonunion employees accepted a pay freeze in 2009, and Loepp volunteered to take a 55 percent cut on his 2009 bonus.

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  • by bev Location: mi on Jun 4, 2009 at 10:22 AM
    Greed to raise prices?So many jobs have been cut that had people supplied with this insurance.Loss off jobs means insurance company will loose money.Yet keep raiseing costs,loose more money as most won't pay it.Then BCBS can ask for bailouts like AIG and others,then eventually go out of bussiness.Want,want,want===Go out of bussiness or charge less and quit raising prices.Car companies are proof of that.Wake up people,good times are comming to an end.
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