Blue Shield of California CEO Discusses ACOs, Profit Cap
In an interview with Kaiser Health News, Bruce Bodaken -- CEO of Blue Shield of California -- discussed the insurer's partnership with CalPERS to form an accountable care organization, the effect of the company's decision in June to place a 2% cap on profit margins andÂ criticism of his $4.6 million salary last year. Bodaken said that "through the partnership with CalPERS, we've seen a 15% reduction in hospital readmissions, and a reduction in admissions as well." Bodaken also said Blue Shield will not need to adjust its profit cap "over the next couple of years." In addition, he noted his salary "is well within the market standard for organizations our size."
- "Insurance CEO Says Prevention, Collaboration Are Key to Controlling Costs -- The KHN Interview" (Mitchell, Kaiser Health News, 8/4).