In January, some Blue Cross Blue Shield companies planned layoffs and buyouts to combat rising costs.
Here are 13 BCBS updates from January to note:
Executive moves
- Independence Health Group CEO Gregory Deavens plans to retire at the end of 2025. The company is the parent of Independence Blue Cross.
- Blue Shield of California named Lois Quam as its next CEO. Ms. Quam was previously the company's president. The nonprofit insurer restructured, creating Ascendiun, a parent company to oversee its health plan and other offerings. Paul Markovich, the previous CEO of Blue Shield of California, was named CEO of Ascendiun.
- Blue Cross and Blue Shield of Illinois named Brian Snell as its new president. Former president Stephen Harris has been named president of government programs at Health Care Service Corp., the parent company of BCBSIL.
Rising costs
- GuideWell, the parent company of Florida Blue, is laying off 3% of its workforce across 29 states. A spokesperson for the company said the healthcare industry is "facing complex challenges, including competitive market conditions, regulatory changes, and rising medical costs."
- Blue Cross and Blue Shield of Vermont CEO Don George warned the company is facing "unrelenting" cost increases. In October 2024, the payer incurred a $13.6 million loss, the highest month of paid claims in its history.
- Blue Cross Blue Shield of Michigan offered buyouts to employees as part of an effort to cut $600 million in administrative costs. The company has lost more than $1 billion within its core insurance business over the past two years.
- Arkansas Blue Cross Blue Shield will lay off about 75 employees. The nonprofit BCBS affiliate reported a loss of more than $100 million in the first three quarters of 2024.
M&A and investments
- Arkansas Blue Cross and Blue Shield is discussing a potential merger with Cambia Health Solutions, according to Arkansas Business.
- Solera Health received $40 million in Series E financing, co-led by Health Care Service Corp., Cobalt Ventures, Horizon Mutual Holdings, and Adams Street.
- Elevance Health completed its acquisition of Indianapolis-based Indiana University Health's health plan. IU Health Plans will now operate as part of Anthem Blue Cross and Blue Shield in Indiana.
Legal updates
- Three TeamHealth-affiliated physician groups sued Blue Cross and Blue Shield of Texas, alleging that the insurer breached its contract by improperly reducing reimbursements for emergency services.
- Blue Cross and Blue Shield of North Carolina and UnitedHealth's Change Healthcare agreed to pay $1.67 million to settle a class action lawsuit accusing them of using automated technology to send voice messages to individuals without their consent.
- Florida Blue sued CMS over its Medicare Advantage star ratings. Attorneys for Florida Blue argued CMS did not account for the effects of natural disasters when it calculated the insurer's Medicare Advantage star ratings. The insurer is one of several to challenge the agency's star ratings on different bases.