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Article: Blue Cross says it could go bankrupt Ties most of its losses to Medex, eyes change; others dispute view
- Article from:
- The Boston Globe (Boston, MA)
- Article date:
- January 10, 1997
- Author:
CopyrightCopyright 1997 The Boston Globe. Provided by ProQuest LLC. (Hide copyright information)
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The chief executive of Blue Cross and Blue Shield of Massachusetts
said yesterday his company had a bigger-than-expected loss last year
and raised the possibility that the state's largest health insurer
could go bankrupt unless certain changes were made.
In an interview with WBUR radio, William Van Faasen said Blue
Cross lost $70 million in 1996. In mid-November, the insurer
predicted it would lose $50 million for the year; in August the
company forecast a loss of $40 million. But, instead of making a
substantial profit in the fourth quarter of the year, as the company
projected, Blue Cross posted a small loss.
Van Faasen blamed much of the loss on Medex, a regulated
insurance product ...