Blue Cross to lay off 80 to 90 workers

Posted August 12, 2010

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— Blue Cross and Blue Shield of North Carolina officials said Thursday that they would lay off 80 to 90 data entry clerks and support personnel over the next nine months to cut costs.

The work will be turned over to Sourcecorp., a Dallas-based firm that handles records management, business processing and other functions for about 4,100 firms, including 14 health plans.

Blue Cross officials said the move would save the insurer about $1.6 million to $2.1 million in administrative costs.

"This is a difficult decision that will affect good employees whom we care about," Blue Cross President and Chief Executive Brad Wilson said in a statement. "It is part of our ongoing work to reduce our costs to keep premiums as affordable as possible for our customers and to remain competitive as a company."

Blue Cross plans to reduce operating costs by 20 percent by 2014, officials said.

The work being outsourced will be done by Sourcecorp employees in North Carolina and the Philippines, officials said. Data entry work for the State Health Plan will remain in North Carolina, they said.

As a U.S.-based company, Sourcecorp is subject to federal security and privacy regulations, officials said. Blue Cross required the company to meet extensive data protection standards before being awarded the contract, they said.

Most of the Blue Cross jobs will be eliminated next year, officials said. None involves customer service calls or direct contact with Blue Cross customers, they said.

Affected employees will be eligible to receive severance pay, continued health benefits for a specified period of time and outplacement assistance, officials said.


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  • whatusay Aug 13, 2010

    If the federal government would lay off a few hundred thousand instead of continuing to hire, this country might recover.

  • balog Aug 13, 2010

    Keep in mind this is a company that puts on a disguise on for people to see and think they are so good, gracious and generous. Year in and year out the local NC Carolina Parent magazine picks it as "top family friendly place to work" ever wonder why? Ask Bob Greczyn what links he had to Carolina Parenting Inc. the company that owns the magazine. This company for years defecates over its employees (rewards its executives lavishly). It is a shame it won't be any of the execs who get the axe - you know ones who used "alternative methods" to get that VP title, people who are not just useless in title roles but counter productive to getting things done. But that is the American Way.

  • indrdw Aug 13, 2010

    I doubt the BC customers will see the savings they say BC gets. Just wait until no one can afford insurance. THe government did not address the cost of healthcare. THey just made it more expensive for companies to give employees affordable premiums, cutting medicare(no matter what the commercials are saying) and giving more to the people who don't care if they have coverage and have always got care because they get it from the government to begin with.

  • fischer Aug 13, 2010

    Getting ready for Obama-care.....

  • yg58 Aug 13, 2010

    BCBS has already outsourced many of their admin jobs, and the decline in quality of service has been noticeable to its customers. I personally know that brokers have made numerous complaints to the bigwigs at BCBS, but I guess they simply don't care about quality service anymore since now they are going to outsource even more. I see big bonuses in the future for all these cost-cutters for their "stellar" performance.

  • jse830fcnawa030klgmvnnaw+ Aug 13, 2010

    Would this reduce my BCBS health insurance rates and multiple deductible? No.

  • Mean Old Mom Aug 12, 2010

    It is what it is......

  • ghimmy51 Aug 12, 2010

    Average Americans out of jobs while costs are cut by employing foreigners with low pay and no benefits. The company stock does great. The stockholders get a few cents per share and the already mega rich executives get ultra rich. It's the Republican way. You should know that already as you watched it happen to all of us for so many years. How do you think we GOT HERE? It's lack of sense to blame all your problems on the President who just barely arrived and is trying to repair the damage. That doesn't stop you though, does it?

  • ghimmy51 Aug 12, 2010

    And the fat cats get fatter pay.

  • ncwiseguy Aug 12, 2010

    i worked for tom rose, blue cross ceo, until the mid 90s. on his watch there were no problems with administrative cost. only when the florida crowd arrived (new ceo = ken otis) did spending get out of control. for five years, his cronies spent money like it was water.......not to mention all the talented ey personnel they ran off in the process. i left too realizing that life was too short to put up with otis and his mess.

    otis was fired 5 years after his arrival........failure to perform and for not making a dime during his relatively short tenure.

    brad wilson, the new ceo, seems to be on target with administrative cost cutting. but i caution him about making drastic changes (like outsourcing stuff to philppines). having had some really bad experience with an internet service provider, i know how difficult "foreign" communication can be. best alternative........close unfilled jobs, dont fill retirement jobs, etc. it will work its way out.

    i ll watch with interest!