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Article: Insurer plans breakup In bid to stem losses, Blue Cross says it will divide into four firms
- Article from:
- The Boston Globe (Boston, MA)
- Article date:
- February 6, 1997
- Author:
CopyrightCopyright 1997 The Boston Globe. Provided by ProQuest LLC. (Hide copyright information)
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Blue Cross and Blue Shield of Massachusetts, seeking to reverse
its financial losses, proposed yesterday to divide itself into four
separate, nonprofit companies.
Three of the companies would focus on separate core businesses:
health maintenance organization, traditional group indemnity
insurance and individual indemnity insurance. All three would
operate under a holding company headed by William Van Faasen, Blue
Cross's current chief executive.
Van Faasen said the move, which needs the approval of state
regulators, would allow the company to be more agile. "We believe we
will be more successful and can focus more attention on service to