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Feds probing more states' Blue Cross plans, paper says

Antitrust regulators have expanded a probe of Blue Cross health insurance plans' contracts with hospitals to several more states, including North Carolina, the Wall Street Journal reports.

The investigation is looking into whether Blue Cross plans forced hospitals to sign contracts that stifle competition from rival insurers and raise prices for patients. The so-called "most-favored nation" clauses have been a focus of a U.S. Justice Department lawsuit filed last fall against Blue Cross Blue Shield of Michigan.

The federal investigators have sent civil subpoenas to Blue plans in other states, including Ohio, Kansas, Virginia and North Carolina, the Wall Street Journal reports.

Lew Borman, a spokesman for Blue Cross and Blue Shield of North Carolina, declined to comment. The Chapel Hill company is this state's largest health insurer, with 3.7 million members.

Blue Cross gives raises to top executives

Blue Cross and Blue Shield gave small raises to its top executives in 2009, even as profit fell at the state's largest insurer.

Robert J. Greczyn Jr., who retired as CEO on Feb. 1, received total compensation of $4.08 million, the nonprofit reported in its annual report with the N.C. Department of Insurance. That was about 2 percent more than a year earlier.

James B. "Brad" Wilson, left, who took over the top spot last month, earned $1.82 million in 2009, also about a 2 percent raise.

To some extent, the figures are old news. Wilson likely received a significant raise for his new role as CEO, a total that Blue Cross won't have to report until next year. And Greczyn probably received a retirement package from the company, but no details were disclosed in the regulatory filing.

Blue Cross has come under fire from critics who say the insurer has too much market power and too much freedom to raise premiums. Those critics also point to top executives' salaries as excessive when an increasing number of consumers can't afford health coverage.

Blue Cross says that its executive pay is fair and comparable to other insurers its size. The Chapel Hill-based company employs about 4,600 people and has 3.7 million members.

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