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(FOX 2) – One of Michigan's biggest health insurance providers has laid off hundreds of workers while several hundred more took buyouts.
Blue Cross Blue Shield of Michigan said it's looking to save hundreds of millions of dollars as medical and pharmacy costs put pressure on the insurance industry.
What we know:
Blue Cross Blue Shield of Michigan says more than 500 of its employees took buyouts offered to workers earlier this year, while more than 220 filled positions were eliminated.
In a statement to FOX 2, the provider said the "surging use of an expensive health care system are pressuring health insurance premiums and our financial performance."
Over the past few months, approximately 250 contractor positions were cut while more than 400 unfilled jobs were also eliminated.
The cuts come after the company's CEO said in 2024 it was looking to reduce expenses due to the high costs afflicting the industry.
What we don’t know:
The statement from Blue Cross Blue Shield of Michigan did not include where the cuts took place, only that it was aiming to trim "administrative expenses" over the next three years.
Related
Health insurance provider Blue Cross Blue Shield of Michigan is offering buyouts to some employees in an effort to trim costs.
Dig deeper:
Last year, BCBSM started a program aimed at making its company more efficient, saving it $200 million in costs.
From there, it set a goal of cutting another $285 million. The buyouts helped save $94 million.
The Source: A statement from Blue Cross Blue Shield of Michigan was used to report this story.
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