Bill Would Let Blue Cross Shed Its HMO Faster
The state Assembly passed a bill that would speed up Blue Cross of California’s effort to sell TakeCarea health maintenance organization (HMO) started by Blue Cross 10 years ago.
The bill, sponsored by Senate Majority Leader Barry Keene (D-Benicia), would allow TakeCare to immediately change from a nonprofit organization to a for-profit concern. The change usually would require an application process that can takes months to complete.
Blue Cross, however, is in a hurry to shed TakeCare. Based in Woodland Hills, Blue Cross, one of the state’s biggest health insurers, has been struggling in recent years and wants to sell TakeCare to raise much-needed cash. Blue Cross already has announced a tentative agreement to sell TakeCare to an investor group, although the proposed price was not disclosed.
The bill was passed by the Assembly last Thursday by a 62-11 vote. It still requires approval by the Senate and Gov. George Deukmejian.
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