More than 500 Blue Cross employees take voluntary separation offers; more coming




, More than 500 Blue Cross employees take voluntary separation offers; more coming

Greater than 500 non-union workers at Blue Cross Blue Protect of Michigan have accepted voluntary separation affords and can depart the state’s largest well being insurer by the top of the yr.

The Michigan Blues made the supply to about eight,650 nonbargaining unit workers in September. The supply to retire or depart employment was made for a number of causes, together with serving to to decrease the Detroit-based firm’s administrative prices.

Almost 6 p.c of its workforce, or 513 employees, have accepted the supply, mentioned Andy Hetzel, Blue Cross’ vice chairman of company communications. Staff embody 441 from Blue Cross subsidiaries and 72 from its rising markets division, he mentioned.

Hetzel mentioned Blue Cross has supplied the identical phrases to its 2,060-employee union workforce, UAW Worldwide.

Every termination supply contains compensation and well being care advantages as much as a most of 52 weeks, relying on size of service. These eligible to retire can settle for the supply along with their retirement advantages.

“We knew heading in that we had a major variety of retirement-eligible workers and anticipated that others is likely to be contemplating doing one thing completely different given the affect of COVID on our lives,” Hetzel mentioned in an e mail to Crain’s.

“The VSO permits individuals to transition into their subsequent steps with extra monetary and profit safety, commensurate with their years of service to the corporate,” Hetzel mentioned. “It advantages our enterprise, and does proper by the devoted workers whose work helped make our success doable.”

Hetzel mentioned the voluntary terminations will assist Blue Cross additional lower administrative prices.

“We’re consistently methods to decrease our administrative prices by means of effectivity and steady enchancment, to make sure inexpensive protection and look after our clients and members,” Hetzel mentioned.

In 2019, Blue Cross accomplished a three-year cost-cutting effort referred to as “strategic enterprise transformation” that trimmed greater than $300 million in administrative prices from Blue Cross.

“No one may have predicted the good disruption to our lives that the coronavirus pandemic introduced over these previous months,” mentioned Blue Cross Dan Loepp in a press release to workers in September. “Many people have misplaced household, buddies and neighbors to COVID-19. Every of our lives — at house and at work — has been basically modified by the occasions of this yr. A few of you will have expressed to me, personally, an curiosity in reordering your work-life steadiness or doing one thing new.”