Blues official's pay package changed. (Blue Cross Blue Shield of the National Capital Area)

Severance pact altered prior to insurer merger

Blue Cross Blue Shield of the National Capital Area altered the terms of its chief executive officer's contract last year, guaranteeing Larry C. Glasscock $2.8 million if he left the health insurer if his position changed, according to documents filed with Maryland regulators.

The Fair Care Foundation, a Washington-based nonprofit that is suing to over-turn me January alliance of the National Capital and Maryland Blue Cross Blue Shield plans, contends the changes in Glasscock's employment contract were made in anticipation of his leaving the alliance soon after it received regulatory approval.

John Ellison, a Philadelphia attorney who represents the foundation in its lawsuit against directors and officers of the D.C. Blue Cross …