Featured in Health Business Daily, Dec.10, 2010

BCBSND to lay off employees, eliminate positions to cut costs

Reprinted from THE AIS REPORT ON BLUE CROSS AND BLUE SHIELD PLANS, a hard-hitting independent monthly newsletter on new products, market share, strategies, conversions, financing, profitability and strategic alliances of BC/BS plans. (Not affiliated with the Blue Cross and Blue Shield Association or its member companies.)

December 2010Volume 9Issue 12

Blue Cross and Blue Shield of North Dakota said it is laying off 63 employees and has eliminated another 57 positions as part of a $16 million cost-cutting strategy. The layoffs, which affect 7% of the insurer’s work force, will save the company $3 million in future salary costs, although BCBSND must make $875,000 in one-time severance payments, according to the Blues plan. At the same time, BCBSND said, it has invested $2.5 million in initiatives to reduce the medical cost trend; the insurer has projected a $10 million reduction in claims expenses. Visit www.bcbsnd.com.

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