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June 02, 2010 at 08:00 PM
Vermont insurance regulators have concluded an executive compensation investigation by ordering a nonprofit health insurer to give $3 million in refunds to subscribers.
Blue Cross and Blue Shield of Vermont, Berlin, Vt., paid the company’s former chief executive officer, William Milnes Jr., about $7 million around the time he retired in 2008 and during the previous year, according to officials at the Vermont Department of Banking, Insurance, Securities and Health Care Administration.
Milnes supporters say he brought the company back from the brink of bankruptcy, and Vermont Business Magazine has described him as an executive who “saved Blues.”
Vermont regulators found that Vermont Blue overpaid Milnes because it used compensation data from bigger plans to set Milnes’ compensation.
Vermont Blue has entered into a stipulation and agreed to accept the idea that it must pay $3 million back to subscribers, according to Paulette Thabault, the Vermont insurance commissioner.
