Caldier, Kuderer introduce legislation to curb excessive executive and board pay at nonprofit insurance companies

Rep. Michelle Caldier and Sen. Patty Kuderer have introduced legislation to curb excessive pay hikes for executives and board members at nonprofit insurance companies in Washington state.

Under House Bill 2500 and Senate Bill 6392, nonprofit insurance companies with a paid board of directors would be required to convene a randomized panel of at least 10 enrollees to set compensation and benefit levels of board members and the top five highest-paid executives.

Caldier, R-Port Orchard, says the legislation would prevent mutual boardroom back-scratching.

“It's unconscionable to me that at a time when Washingtonians' health care premiums are surging by double digits, executive pay at our nonprofit insurance companies continues to rise exponentially,” said Caldier. “If this bill had already been in statute, members of the public would have been able to decide whether the compensation of Delta Dental's CEO should've nearly doubled from $1.47 million in 2014 to $2.72 million in 2016. I think it's time we put them in charge of these decisions going forward.”

Kuderer, D-Bellevue, is sponsoring the companion bill in the Senate.

“When people's lives and well-being are at stake, it's entirely reasonable that we hold these organizations to a higher standard of transparency and accountability in the way that they do business,” said Kuderer. “It is morally reprehensible that supposedly mission-driven organizations would put their own profits over the people they serve. This common sense legislation will help ensure that duty of care, quality of service and reducing costs for customers come before executive pay.”

House Bill 2500 is currently in the House Health Care & Wellness Committee. Senate Bill 6392 is in the Senate Health & Long Term Care Committee.

The 2018 session began Jan. 8 and is scheduled to run for 60 consecutive days.

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Washington State House Republican Communications
houserepublicans.wa.gov