Former CareFirst CEO Jews says he was forced out

William L. Jews, the former CEO of CareFirst BlueCross BlueShield who is defending his $18 million severance package with the health insurer, said Friday that he was forced out of his job in November 2006.

Jews told leaders of the Maryland Insurance Administration, who are reviewing the former exec's controversial pay package, that Michael Merson, CareFirst's chairman, told him he was going to be let go. Jews, who served as CareFirst CEO for 13 years, said Merson was under pressure from state lawmakers to fire him.

Attorneys for CareFirst objected to Jews' testimony, calling it speculative.

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The MIA began its examination of Jews' severance April 28. Attorneys for the MIA have argued that the pay is excessive and Jews shouldn't be so generously compensated for helping the nonprofit company make money.

But Jews testified Friday that CareFirst has shared compensation packages for all of its top executives with the MIA since the company filed its plans to convert and sell the company in 2001. He said at no time have MIA commissioners questioned the compensation, until now. Jews added that his compensation agreement preceded a state law in 2003 to limit compensation for top executives of nonprofits like CareFirst.

"I had every belief that my contract was in full force," Jews said during the hearing.

Jews defended his severance package, saying he helped increase CareFirst's products and services to make insurance more accessible and affordable in Maryland.

Attorneys for CareFirst, Jews and the MIA will make final arguments in the case by June 18. Maryland Insurance Commissioner Ralph Tyler could issue a decision by July.

In 2001, Jews led the company through a controversial attempt to convert and sell CareFirst to WellPoint Health Networks Inc., a California-based insurer, for $1.4 billion. Then-MIA chief Steven B. Larsen, now director of the Maryland Public Service Commission, blocked the deal in March 2003.