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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