Blue Cross Blue Shield of Florida Names Head of Minnesota Blues as New CEO

Blue Cross and Blue Shield of Florida has named Patrick J. Geraghty, president and chief executive officer of Blue Cross and Blue Shield of Minnesota, as its new CEO. He will succeed Dr. Robert I. Lufrano, chairman and CEO of the Sunshine State's largest health insurer, who's retiring Sept. 1.

Geraghty has been president and CEO of Blue Cross and Blue Shield of Minnesota since 2008. With more than 30 years of experience in the health industry, he has held senior leadership positions at Horizon Blue Cross and Blue Shield of New Jersey and Prudential Insurance Co.

The not-for-profit Blue Cross and Blue Shield of Florida, a policyholder-owned mutual, has 4 million members and 31% market share in the state The board of directors also will elect Geraghty as chairman in September.

Lufrano has served as chairman and CEO of the Florida Blues since 2004 and has been with the company since 1990 (BestWire, March 30, 2011).

Blue Cross and Blue Shield of Florida, and its subsidiary, Health Options Inc., is one of the largest health care insurers in the state of Florida, according to BestLink, which provides online access to A.M. Best's database of insurance information. It continues to enjoy a market leadership position, with 31.2% market share as of 2009 year-end.

The company reported its 22nd year of favorable statutory net income, with margins strengthening during 2010, as it posted a $268 million underwriting gain compared to a $72 million loss in 2009. The net premium experienced about 1% decline, according to BestLink. The growth in earnings was driven by 550 basis points improvement in the medical loss ratio that followed moderated utilization levels, increased focus on profitability, and realization of various cost savings initiatives.

Blue Cross and Blue Shield of Florida Inc. currently has a Best's Financial Strength Rating of A (Excellent).

(By Fran Matso Lysiak, senior associate editor, BestWeek: [email protected])