HCSC shuffles executive leaders to and from BCBSIL
The nation's fourth largest insurer is calling on the leader of its flagship plan to manage technology and services across its regions, while ushering in a new president at the 7 million member company.
Chicago-based Health Care Service Corporation has named Maurice Smith as president of Blue Cross and Blue Shield of Illinois, the largest of the company's five Blue Cross plans.
Smith has spent most of his career with HCSC. He was most recently head of the treasury department and corporate development, overseeing strategic partnerships, mergers and acquisitions, including the takeover of Blue Cross and Blue Shield of Montana in 2013. He also had a hand in directing HCSC's subsidiaries, including its its largest, Dearborn National Life Insurance Company.
"Expanding access to affordable healthcare coverage is an imperative," said Smith, who outside of his insurance career is the chair-elect of the Chicago Sinfonietta orchestra.
"Maurice brings to this role a broad perspective and deep understanding of our business and operations rooted in more than 20 years of experience across corporate finance, treasury, business development and subsidiary management," said Colleen Reitan, HCSC executive vice president and head of plan operations. "His track record of leading multi-stakeholder teams, along with his strong connection to the Illinois business and civic community will help position BCBSIL for continued success in this fast-changing healthcare environment."
Smith is succeeding Karen Atwood as head of the 7.3 million member BCBSIL, after almost six years. Atwood was promoted to a new position at HCSC, the executive vice president of service and technology, to oversee IT and service delivery across the company's 14 million members in five states.
"With so many changes in our healthcare system happening all at once, we need to continue to adapt our capabilities to deliver what our customers deserve and demand from us," said Atwood, who started her career at HCSC in 1990 as an accounts manager and then became national account underwriting officer in 1995 and chief underwriter in 2001.
"Karen brings the expertise necessary to focus on taking our service and technology capabilities to the next level as we continue to expand access to cost-effective health coverage," said HCSC CEO Patricia Hemingway Hall.
The largest mutual insurer in the country, HCSC was created in 1975 through the merger of two Illinois Blue plans. Since the late 1990s HCSC has been on a slow and steady growth path, acquiring and merging with other non-profit Blue Cross Blue Shield operations.
From 2009 to 2013, HCSC posted at least a $1 billion in net income annually--until last year, when it booked profits of $648 million as it shored up for health reform. The company increased its total adjusted capital by about $700 million between 2012 and 2013, to $10.2 billion, and also increased its premium deficiency reserve to $283 million, up from $34 million in 2012.
