Blue Cross Blue Shield of Texas to shed 183 positions statewide : JASON ROBERSON
By: Health Insurance
Submitted: 2009-08-14 14:30:20 | Word Count: 410
In preparation for an overhaul of health care, Blue Cross Blue Shield of Texas, the state's largest health insurer, with 4 million members, said Wednesday it will eliminate 183 positions.
While Congress and the nation debate health care legislation, the Richardson-based health insurer is hedging bets that at least one aspect will be agreed upon:
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"Health insurers will be expected to further reduce administrative expenses," said Margaret Jarvis, spokeswoman for Blue Cross Blue Shield of Texas.
The insurer said it looked to cut redundant positions and combine job functions across its seven Texas locations. In Richardson, 57 positions will be eliminated between Oct. 2 and Dec. 31.
The move is partly the result of a decision by Chicago-based parent company Health Care Services Corp. to better position itself to remain competitive, Jarvis said. Health Care Service is cutting 650 positions from the Blue Cross Blue Shield companies it operates in Texas, Illinois, New Mexico and Oklahoma.
Besides the potential health care overhaul, Blue Cross Blue Shield of Texas cited the ongoing economic downturn as a factor. Jarvis said they've seen the economy weaken their corporate client base.
"Last year, we started observing in our existing client base some shrinkage, meaning we weren't losing the account, but the account was getting smaller," said Darren Rodgers, CEO of Blue Cross Blue Shield of Texas, in a March interview.
Wednesday's announcement comes on the heels of Arlington-based Texas Health Resource's decision Monday to lay off 33 workers across its 14 hospitals. It also cited the economy as a reason for layoffs.
The news confronts the idea of health care as the nation's lone remaining bastion for job growth.
In Texas, Blue Cross Blue Shield is the largest provider of health benefits, working with 40,000 physicians and 400 hospitals in all 254 counties.
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