Retired BCBSRI CEO Peter Andruszkiewicz paid $1.1M after leaving

PROVIDENCE — Peter Andruszkiewicz, former president and CEO at Blue Cross & Blue Shield of Rhode Island, was paid incentive payments and severance totaling $1.1 million in 2017 for meeting performance metrics unrelated to the nonprofit’s financial health in 2016, the year he retired, when the health care company reported a $34.4 million loss.

The payments were reported in a supplemental compensation exhibit filed with the R.I. Department of Business Regulation on March 2, 2018. The document was not posted online.

Andruszkiewicz came to Blue Cross from a leadership role with the nonprofit Kaiser Foundation Health Plan of Georgia in 2011. He is credited with leading the insurer to set up accountable care organization contracts inspired by the Affordable Care Act. New types of contracts produced a 30 percent decrease in hospital re-admissions over four years, and the company made its first contribution to its reserves – $22 million – in 2013.

The company reported a $22.6 million profit in 2017, attributed to a one-time $10.7 million realized capital gain resulting from moving assets from one investment to another due to changing custodial banks, and members requiring fewer inpatient hospital stays and expensive procedures.

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Andruszkiewicz received $781,211 in incentive payments based on meeting metrics for his 2016 performance, said BCBSRI spokeswoman Jill Flaxington. “The metrics, which are consistent with our company-wide incentive program, covered such measurements as total membership, CMS rating and customer satisfaction,” Flaxington said.

Andruszkiewicz’s severance payment was $370,615.

Flaxington said the payments were made according to Andruszkiewicz’s employment agreement. “BCBSRI uses a balanced scorecard that looks at a number of different metrics, not just the company’s financial performance, to determine the amount of incentive paid,” Flaxington said.

Rob Borkowski is a PBN staff writer. Email him at Borkowski@PBN.com.