What did new IRS 990 Forms get us? Board Compensation at Health Insurers?

I’m visiting the same topic from last week because one of my colleagues – someone who asks great questions in the nonprofit arena – asked the same question I’ve been asking.  Why is it that one would put the phrases “board compensation” and “nonprofit” in the same sentence?

Well, they are on the new 990s. 

But they were on the old 990s, too! 

Has the changed form changed practices?

No. 

Not at health insurers. 

But apparently the state of Massachusetts is asking some good questions – and trying to legislate that board members of nonprofits should not be compensated for their “volunteer” work, as they are at most of the 22,000 nonprofits in the state.

Two large health insurers, Harvard Pilgrim Health Care and Tufts Health Plan have refused, stating it “is the industry norm and they must do this to attract directors, and that their members ‘committed significant time and effort to their board duties’.”  

I applaud what Massachusetts is trying to do.  Basically, health insurers are either in or out – they are nonprofits or they’re not. Nonprofit boards are volunteers.  For-profit boards can be compensated.  Which is a health insurer?  I want to know! 

And did the "new" 990s find all this?
No, they didn’t. 

The citizens of Massachusetts started this in 2009.  

I still don’t see how the 990s have made any difference at all, except taking a lot more time to fill out…

Thoughts?