THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Wednesday, July 26, 1995               TAG: 9507260430
SECTION: LOCAL                    PAGE: B4   EDITION: FINAL 
SOURCE: ASSOCIATED PRESS 
DATELINE: RICHMOND                           LENGTH: Short :   33 lines

TRIGON STILL HASN'T SOLVED MANAGEMENT WOES, GILMORE SAYS

Attorney General James S. Gilmore III again blasted the state's largest health insurer Tuesday, saying it still hasn't corrected gross mismanagement problems even as it seeks to become a public company.

Trigon Blue Cross Blue Shield, which recently paid nearly $30 million in fines and refunds to subscribers, has applied to the State Corporation Commission to become a for-profit public stock company.

Gilmore, who earlier in the day in U.S. District Court won the right to make public a report of his investigation and file it with the SCC, said he still has questions about Trigon and its management practices.

``We believe there needs to be some demonstration of change so that the public, as this matter proceeds onward, can have some satisfaction that the new Trigon will behave better than the old one,'' he said. ``Going into court to try to suppress the giving of this information to the State Corporation Commission does not demonstrate that. It demonstrates the same type of approach that we have always seen from Trigon.''

The SCC must approve Trigon's proposed switch to a public for-profit endeavor.

KEYWORDS: TRIGON BLUE CROSS BLUE SHIELD INVESTIGATION by CNB