Blue Cross and Blue Shield of Michigan is starting a company that will sell long term care insurance and health advice.[@@]
Michigan Blue hopes to have the new subsidiary up and running by July 2006.
Although the new LTC unit will start by selling coverage in Michigan, Michigan Blue hopes it eventually will sell LTC coverage in other states, the company says.
Michigan Blue expects “the subsidiary to provide an equal or higher rate of long-term financial return to the parent company than investments such as Treasury bills,” the company says in a statement.
In addition to providing or administering major medical coverage for 4.7 million Michigan residents, Michigan Blue already sells dental and workers’ compensation insurance.
Michigan Blue has picked Ken Dallafior, formerly president of DenteMax, the company’s dental preferred provider organization network subsidiary, to be president of the new unit.
Rick Morrone, who has been director of national accounts marketing and sales at Michigan Blue, will take over as president of DenteMax.