Blue Cross Benefits Cut Off for Board of Directors
PROVIDENCE, R.I. (AP) -- The state Department of Business Regulation has ordered nonprofit insurer Blue Cross and Blue Shield of Rhode Island to stop paying its board of directors' health and dental benefits.
The DBR also ordered Blue Cross to seek reimbursement from the board members for the value of the benefits they have received since July 7th. On that date, the General Assembly passed a law saying the company's board members could not receive compensation.
Blue Cross had appealed to the DBR, saying the benefits were not compensation. The department disagreed, and ordered the company to provide evidence that it has complied with its order by January 15th. A Blue Cross spokesman did not immediately return a call seeking comment on Tuesday.