Article: Bay State HMO ailing; bailout plan reported set

Troubled Bay State Health Care is about to be bailed out in a deal that would effectively merge the state's second-largest health maintenance organization with a stronger company, say people who are participating in the talks.

When the agreement is announced, possibly this week, Bay State is also expected to reveal that it is in far worse financial shape than previously reported.

The pending deal, according to sources, is basically a shotgun marriage arranged by the state's Division of Insurance, which was worried that Bay State would not be able to turn itself around on its own. The goal of both the company and the state has been to strike a deal that would protect Bay State's 380,000 ...

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