Blue Cross Blue Shield of Michigan announces additional layoffs, job cuts
Hundreds of open and filled positions have been eliminated at Blue Cross Blue Shield of Michigan, adding to the over 500 employees who had already accepted a Voluntary Separation Offer.
This latest step eliminates nearly 220 filled positions and more than 400 positions from its staff, the company said in a statement issued Tuesday.
All of this is part of a strategic goal that began in 2024 to reduce administrative expenses by $600 million over three years.
The Voluntary Separation Offers issued earlier this year were a financial incentive for non-bargaining unit employees to leave. That resulted in $94 million in cost savings, the company said. In addition, the company cut nearly 250 contractor roles in recent months.
But "additional employment actions were necessary," the statement said.
"Over the last year, our CEO has been clear and transparent with our employees about the significant cost pressures facing our business. Rising medical and pharmacy costs, and surging use of an expensive health care system are pressuring health insurance premiums and our financial performance," the company said. "Our administrative costs comprise nine cents of every premium dollar, and in this time when we are taking double-digit premium increases to our customers, we owe it to them to look inward and take steps to manage our own costs."
Blue Cross Blue Shield of Michigan is the largest health insurer in the state, with 830,000 members in Michigan. It also claims the largest health network in the state, with more than 37,000 doctors and 150 hospitals working with one or more of the company's plans.
