Blue Cross says raises, higher premiums unrelated

LALIBERTE, THANK YOU.

>> YOU BET.

>> Reporter: A DISCOVERY ABOUT

THE LARGEST HEALTH INSURER.

WRAL'S LAURA LESLIE REVEALS THE

WHOPPING PAY RAISES AND WHAT

THE COMPANY HAS TO SAY IT.

>> BLUE CROSS BLUE SHIELD OF

NORTH CAROLINA FILED THEIR

FINANCIAL REPORT SOD INCLUDING

INFORMATION ABOUT THE COMPANY'S

BOTTOM LINE AND EXECUTIVES.

SALARIES AN BONUSES WERE UP

THOUGH THE COMPANY INSISTS THEY

WERE NOT OUT OF LINE EVEN

THOUGH PROFITS WERE DOWN.

YOU MAY HAVE SEEN ONE OF THESE

ADDS ABOUT HEALTHCARE COSTS.

>> WE ARE FIGHTING TO REIN IN

MEDICAL COSTS.

>> Reporter: BUT THE COMPANY IS

NOT REINING IN EXECUTIVE

SALARY.

OH BRAD WILSON TOOK IN ALMOST

$2.5 MILLION IN 2012, UP 37%

OVER LAST YEAR.

CHIEF FINANCIAL OFFICER, GERALD

PETGO GOT A 58% RAISE.

THE AVERAGE RAISE FOR THE NINE

TOP OFFICERS?

43%.

MEANTIME, PREMIUMS ROSE, TOO.

INDIVIDUALS PAID AROUND 8% MORE

LAST YEAR FOR THE AVERAGE SMALL

EMPLOYER?

NEARLY 9%.

THE TWO ARE NOT RELATED SAYS A

SPOKESPERSON.

HE SAYS THEY ARE NOT THE REASON

FOR RISING COSTS.

>> WHAT DRIVES PREMIUMS IS

MEDICAL COSTS.

>> BLUE CROSS BLUE SHIELD PAY

-- UP TO JUST 1/10 OF ONE CENT.

A TINY FRACTION OF THE BOTTOM

LINE.

>> THE RETURNS ARE SIGNIFICANT.

AS FAR AS THE IMPACT ON

PREMIUMS IN REVENUE, IT'S

REALLY IN SIGNIFICANT.

>> THERE'S A REAL PROBLEM OF

PERCEPTION HERE.

>> Reporter: ADAM SEALING HAS

BEEN A CRITIC OF BLUE CROSS

BLUE SHIELD IN THE PAST.

HE SAY IT IS COMPANY IS DOING A

GOOD JOB OF TRYING TO CONTROL

COSTS, BUT BIG RAISES DONE

MATCH THAT MESSAGE.

>> IT COULD CREATE A PERCEPTION

THAT MAYBE YOU ARE NOT AS

SERIOUS ABOUT THAT COST

CONTAINMENT AS YOU SHOULD BE.

>> Reporter: NOW BLUE CROSS'

LOU BOREMAN SAYS MOST OF THE

INCREASES CAME FROM

PERFORMANCES.

THEY ARE GEARING UP FOR THE