How Much Do Executives at Orange County’s Low-Income Health Insurer Make?

How Much Do Executives at Orange County’s Low-Income Health Insurer Make?
Healthcare workers at St. Joseph Hospital in Orange, Calif., on Dec. 16, 2020. (John Fredricks/The Epoch Times)
Jill McLaughlin
11/9/2022
Updated:
11/11/2022
0:00

The executives at CalOptima—a public health insurance company for low-income residents in Orange County, California—are earning six-digit annual salaries, according to information obtained by The Epoch Times.

CalOptima is the largest health insurer in the county and offers health plans and food assistance programs for economically disadvantaged children, adults, seniors, and people with disabilities through federal Medicaid, Medicare, and other programs.

Four CalOptima executives are receiving salaries from $308,000 to $841,500, plus car allowances and bonuses, according to information provided by CalOptima through an information request.

Chief Executive Officer Michael Hunn, a former priest from St. Louis who became a healthcare executive, earns the highest pay at the healthcare group.

The board of directors awarded Hunn a $280,000 raise in October, elevating his salary to $841,500 a year. Hunn also receives an auto allowance of $550 a month.

A health care organization launches a mobile mammography program in Buena Park, Calif., on Feb. 2, 2022. (Vanessa Serna/The Epoch Times)
A health care organization launches a mobile mammography program in Buena Park, Calif., on Feb. 2, 2022. (Vanessa Serna/The Epoch Times)

Other top executives at CalOptima earn more than $500,000 plus bonuses.

CalOptima’s Chief Operating Officer Yunkyung Kim was hired in October 2021 and has since earned a raise of more than $100,000. She now makes $535,500 a year. Kim oversees the day-to-day operations of several departments, including customer service, program implementation, information services, insurance claims, and network operations.

Her background includes working for other Medi-Cal health plans, including Blue Shield of California Promise Health and Molina Healthcare.

In the past year, Kim was paid a $50,000 recruitment bonus and a $40,200 performance bonus. Kim also received $500 a month for a car allowance.

Chief Medical Officer Richard Pitts, a physician and health care executive, was hired in February to oversee CalOptima’s development and implementation of strategies, health care programs, policies, and procedures. After being hired, Pitts has received a nearly $50,000 raise—bringing his pay up to nearly $600,000, in addition to $90,200 in bonus pay and the $500-a-month car allowance.

Hunn’s chief of staff, Veronica Carpenter, was hired in December 2021 and has since been awarded a merit increase, boosting her salary to $308,335. She also received nearly $18,000 in bonus pay in August and gets a monthly car allowance of $500.

Carpenter served as the deputy chief of staff for Orange County Supervisor Andrew Do before joining CalOptima. Do now also serves as the chair of CalOptima’s board of directors.

Carpenter earned a salary of about $106,200 when she worked for the county in 2021, according to Transparent California.

CalOptima Execs’ Salaries Can Affect Insurance Rates: Former Board Member

One former CalOptima board member John Moorlach, a former county supervisor and state senator, told The Epoch Times the high salaries and raises for some of the organization’s key executives affected insurance rates.

“Obviously, it has an impact on what we pay and what our insurance rates are,” said Moorlach, who served on the board from 2006–2010.

The situation also creates a tricky situation for the low-income health insurance provider, he said. The programs require hospitals and doctors to receive lower payments to serve CalOptima’s members.

“It’s really bugging the hospital providers and the medical groups that service all these patients,” he said. “When this is so public, and you’re working to help poor people, it creates a massive disconnect. The optics are awkward.”

Jill McLaughlin is an award-winning journalist covering politics, environment, and statewide issues. She has been a reporter and editor for newspapers in Oregon, Nevada, and New Mexico. Jill was born in Yosemite National Park and enjoys the majestic outdoors, traveling, golfing, and hiking.
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