The top executive at Blue Cross Blue Shield of Michigan saw an increase last year to his eight-figure compensation package.

The Blues disclosed Wednesday that total all-cash compensation for CEO Daniel Loepp, 65, was $16.9 million in 2022. Of that amount, $13.8 million was Loepp's bonus and $1.7 million his base salary. His total compensation was up $1.3 million from the year before, although still below Loepp's record $19.2 million payday in 2018. He has been CEO since 2006.

For 2022, Blue Cross had a net loss of $777 million, or 2.3%, on an enterprise value of $32.8 billion. Most of that loss was from investment losses during the year, while The Blues' commercial lines of health insurance were net positive.

The insurer pays out an average of $80 million per day for claims and benefits.

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"Overall, the consistently strong performance of the company under Mr. Loepp’s leadership is reflected in this total compensation," Blue Cross spokesman Andy Hetzel said. "He led the Blue Cross Blue Shield of Michigan enterprise through three years of the pandemic in an uneasy economy, while the health care ecosystem was relying on us more than ever.”

Blue Cross is in compliance with rules set by the Affordable Care Act to prevent profiteering by insurance companies and administrative bloat. Those Medical Loss Ratio rules require insurers to pay out on claims at least 80% of the money they take in as premiums from customers, or issue rebate checks.

For its large groups insurance plans, Blue Cross paid out an average of 88% between 2019 and 2021. That figure was 83% for small groups and 74% for individual plans. (Blue Cross individual plan customers were to receive rebate checks last year.)

During a question-and-answer session with reporters Wednesday, Hetzel said Blue Cross has yet to see any price increases from medical providers as a direct result of recent consolidations in Michigan health care, such as the 2022 merger of the Beaumont and Spectrum health systems to create Corewell Health.

"But we are very aware of the impact of large organizations getting larger. And, certainly, we’re seeing that in the health systems in Michigan," Hetzel said. “Downstream, there may be cost implications that are felt down the road. And so what we’re trying to do is maintain very strong, connected relationships with our health systems."

Blue Cross is the largest health insurer in Michigan. As a nonprofit mutual insurer, it reported paying $133 million in taxes last year to federal, state and local governments.

Contact JC Reindl: 313-222-6631 or jcreindl@freepress.com. Follow him on Twitter @jcreindl. 

This article originally appeared on Detroit Free Press: Michigan Blue Cross CEO Daniel Loepp earned $17M in cash in 2022