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Killingsworth Out As Blue Cross Chief

The Boston Globe is reporting that Cleve Killingsworth, the CEO of Blue Cross and Blue Shield of Massachusetts, has resigned.

Former chief executive William Van Faasen will return to run the insurer on an interim basis, according to a Blue Cross press release, while the company searches for a permanent successor.

The Globe story says:

Earlier this month, Blue Cross decided to separate the jobs of chairman and chief executive of the company. Killingsworth turned the chairman's position over to Paul Guzzi, a Blue Cross director and president of the Greater Boston Chamber of Commerce.

Blue Cross recently reported a loss of $149.2 million for 2009. About $95 million of that loss was attributed to the company's write-down of stocks and investment property to a market value below their purchase price.

Roughly four years ago, Van Faasen generated some controversy when he received $16.4 million in a lump-sum retirement benefit when he stepped down as chief executive. The size of that payment was considered extraordinary by some because as a nonprofit, Blue Cross-Blue Shield is expected to use surpluses to support its healthcare mission.

This program aired on March 15, 2010. The audio for this program is not available.

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