Arkansas Blue Cross Blue Shield will lay off about 75 employees, Arkansas Business reported Jan. 9.
The nonprofit BCBS affiliate reported a loss of more than $100 million in the first three quarters of 2024.
The layoffs will affect around 2% of the company's workforce, a BCBS Arkansas spokesperson told Becker's. The layoffs take effect March 21.
Rising medical costs and a decline in Medicaid membership were two driving factors behind the layoffs, a spokesperson told the outlet. Nearly half of Arkansas BCBS' Medicaid members were disenrolled during the redetermination process, and the remaining members tend to have higher medical expenses, the spokesperson said.
Other BCBS companies reported losses in 2024 as medical costs continued to rise.
Independence Blue Cross, Blue Shield of California and Blue Cross Blue Shield of Michigan have all laid off employees in recent months.