Blues Outline Changes to ND Insurance Officials

BISMARCK, N.D. (AP) - Blue Cross Blue Shield of North Dakota has outlined changes it will make after insurance examiners found excessive expenses paid with policyholders' dollars.

Commissioner Adam Hamm ordered the state's dominant insurer to make changes last month after a financial report raised questions about compensation, travel policies, investments and severance packages.

In its response to Hamm, Blue Cross Blue Shield says it has temporarily frozen executive salaries. The insurer says executive salaries likely will be tied to performance in the future.

The Blues letter says it also will cut back on retirement parties and gifts for those retiring, as well as on travel and on the use of charter flights.

The insurer says it also won't buy alcohol for board members or employees at meetings, banquets or other functions.

Officials of the Blues and Hamm's office could not be reached for further comment Monday.

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