Business
Ex-CareFirst CEO sues over pay cut
NEWS IN BRIEF — Posted Sept. 8, 2008
William Jews, former chief executive officer of CareFirst Inc., has filed a federal lawsuit challenging the state of Maryland's authority to cut his severance package in half.
The lawsuit, filed Aug. 11, asks the court to overrule the state insurance commissioner's decision, claiming he "arbitrarily and capriciously singled out Mr. Jews for punishment."
In a decision released July 14, the commissioner ruled that the $18 million package awarded at Jews' termination was excessive given his mixed performance and the company's nonprofit mission. CareFirst was ordered to cut the severance package to less than $9 million, including $2.2 million Jews had already collected. Jews was CEO of CareFirst for 13 years and oversaw an unsuccessful attempt to convert the plan to for-profit status.
CareFirst did not appeal the decision. The company said it would not comment on pending litigation.
The Maryland Insurance Administration spokeswoman Karen Barrow said her office "does not feel the suit has merit, and expects the commissioner's decision to be upheld."
Note: This item originally appeared at http://www.ama-assn.org/amednews/2008/09/08/bibf0908.htm.












