BlueCross BlueShield of Tennessee CEO Bill Gracey is retiring

BlueCross BlueShield of Tennessee Chief Executive Bill Gracey is retiring at the end of August and the Chattanooga-based health insurer is elevating Chief Operating Officer J.D. Hickey to the top post.

Gracey became CEO in January 2013 after the retirement of Vicky Gregg. Hickey had been named CEO-elect by the insurer in June, according to the company.

Betty DeVinney, the BlueCross board chairwoman, said Hickey has proven himself to be a highly capable leader throughout his time at the company.

“He’s consistently driven innovation throughout our organization, while at the same time continuing our commitment to service excellence and affordability. Our board of directors is confident that J.D. is the right person to lead the company at a time when health care continues to change at a rapid pace,” she said in a statement.

Gracey began his work at BlueCross in October 2010, being tapped as president and chief operating officer after having served on the company’s board of directors. In 2012, he was named CEO-elect and worked with Gregg on assuming the company’s top position.

Hickey joined BlueCross in 2011 as CEO of the BlueCross Medicaid managed care subsidiary BlueCare Tennessee, and was named chief operating officer of the parent company less than a year later.

Hickey said he’s grateful for the confidence the board has placed in him.

“Our team, senior leadership and everyone throughout the organization, has successfully navigated unprecedented change in our industry, always with the best interests of our members in mind. And our mission of providing peace of mind through better health will continue to guide our work,” he said.

Before coming to BlueCross, Hickey was a principal at McKinsey & Co., where he led strategic health care consulting and management teams for one of the world’s leading management consulting firms. There he was recognized as the top expert on health care reform.

As a member of former Tennessee Gov. Phil Bredesen’s cabinet, Hickey served as director of the TennCare Bureau from 2004 to 2006. In this role, he led efforts to reform the TennCare program and ultimately return it to financial stability.

Hickey graduated magna cum laude with a bachelor’s degree from Colgate University. He also earned a medical degree from the Duke University School of Medicine and a juris doctorate from the Duke University School of Law.

Gracey said he leaves BlueCross “stronger than ever.”

“I’m very proud of what we’ve accomplished in the past few years and the extremely capable leadership we’ve put in place to continue to the company’s success. It’s a good time to pass the torch to J.D. and team,” he said.

DeVinney said the board is appreciative of Gracey’s leadership as CEO, which she termed “a period of strong performance by the company.”

Prior to being named COO in 2010, Gracey had served on the BlueCross board of directors after retiring as executive vice president and chief operating officer of LifePoint Hospitals.