Blue Cross Rebounds With $26.6-Million Profit

Blue Cross of California, bouncing back from major losses, said it made a $26.6-million profit in the third quarter.

The Woodland Hills company, which collects nearly $2 billion a year in premiums as one of the state’s biggest health insurers, said the earnings for the quarter that ended Sept. 30 compared with a $31-million loss a year earlier.

The latest results also included an undisclosed gain from Blue Cross’ sale of a health maintenance organization, TakeCare, which reportedly was sold for about $45 million in August. But Blue Cross said it would have earned a profit even if TakeCare had not been sold.

Blue Cross continued losing money on its basic insurance business, but the $5.1-million loss in the latest quarter narrowed from a $36.5-million loss a year earlier. Investment income and the TakeCare sale allowed Blue Cross to report the latest overall profit.

The profit narrowed Blue Cross’ loss for the first 9 months of 1988 to $25 million, compared with a year-earlier loss of $97.9 million. During 1986-87, Blue Cross lost $150 million because of soaring health-care costs, increased competition and Blue Cross’ own operating problems.