If you live in Michigan, somebody has to insure you and that is Blue Cross, almost like employer insurance if you will as they have to take you as long as you can pay regardless of your health conditions. I believe this is the only state that has a provision like this with a carrier. Now they are still paying out bonuses though and still have some cash to dump into the Blue Cross Venture Capitol fund but laying off 1000 by years end. 
The CEO made $727,575 in bonuses in 2008. BD
Blue Cross Venture Capital Investment in Phreesia Tablets Appears to be Paying Off
Despite pay freezes and executive pay cuts in 2009, Blue Cross Blue Shield awarded bonuses to roughly 4,000 nonunionized employees in May for reaching targeted performance goals last year, The Detroit News has learned.
The performance awards come as the state's largest insurer seeks to cut about 1,000 jobs by year's end and hike rates on policies covering more than 400,000 people who buy medical insurance directly from Blue Cross.
The nonprofit insurer has said repeatedly it is losing hundreds of millions of dollars each year on its individual plans -- policies for people not covered by employee benefits -- and needs to make cutbacks to strengthen its financial outlook.
The "broken system" refers to the challenges Blue Cross says it's facing as more newly unemployed Michigan residents flock to its individual plans.
As Michigan's insurer of last resort, Blue Cross must take all residents, regardless of their health, which has allowed for-profit insurers to "cherry-pick" Michigan's healthiest consumers, while leaving the state-regulated insurer with the sickest and costliest members -- a model that's financially unsustainable in the long term, Blue Cross has argued.
Blue Cross Blue Shield defends bonuses amid rate hike request | detnews.com | The Detroit News
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Has Blue Cross actually layed off 1000 employees?
ReplyDeleteIt is my understanding that Blue Cross Blue Shield is in the process of filtering out older employees and forcing then out and hiring younger employees to replace them. So technically this isn't a downsizing at all.
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