The Jerk

Well EXCUUUUSSSSEE MEEEEE!

Apparently, I got it wrong. My last post lambasting executive compensation at Horizon BC/BS of NJ was apparently off-base. Well, according to Horizon’s Spin Doctors, it was.

Shortly after Horizon’s executive compensation packages for 2009 were announced earlier this year, Horizon’s Spin Doctors went into high gear with a email blast that attempted to control the damage. You see, there was a a very good reason why these executives were paid so well even though the company did so poorly. Actually, there were several ‘good’ reasons. Did their explanations hold water? You be the judge…

Explanation Part 1: Part of that increase, according to the report, came from deferred compensation from previous years...

===> Oh, so why was his compensation deferred? It couldn’t have anything to do with Horizon’s attempt to convert to a for-profit company in those years? You weren’t just cooking the books to make Horizon look more profitable, I hope. Is it just a coincidence that, when Horizon puts this effort on hold, the deferred compensation is dispersed all at once?





Explanation Part 2: Marino had declined numerous salary and bonus increases that were due to him since 2005.

===> What a Guy! I’m just glad that someone was finally able to convince him to take the money.





Explanation Part 3: Horizon’s executive salaries are in line with the rest of the industry.

===> Great! We’re not the only ones getting ripped off! Misery does love company!





Explanation Part 4: Total executive compensation at Horizon BCBSNJ equates to 64¢ per member, per month or $7.68 per member, per year in annual premiums costs. This represents 0.24% of our members’ monthly premiums;

===> By my math, this means that your average monthly premium is just $267.00. WOW! Can I get on that plan? Please? Pretty please? Or could you just introduce me to one person who pays this premium? I’d like to shake their hand!




Explanation Part 5: In 2009, 88.9 cents of every premium dollar went directly towards paying medical costs for our members.

===> So, with $5.1 billion collected in premiums in 2009, you spent 11.1% or 561 million dollars on operating costs. That blimp must burn a lot of gas!




My last question is, of that 561 million, how much was spent on Spin Doctors? I hope you compensated them well…these guys are GOOD!


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