In a bit of bad health insurance news, Blue Cross Blue Shield of Michigan recently announced that they will have to drastically reduce spending costs, cut as many as 1,000 jobs, and ask the state to increase premiums for their individual health insurance plans.
According to a Detroit Free Press article, BCBS of Michigan will be axing some 400 jobs in the next three months. The parent BCBS of Michigan company and it’s subsidiary HMO, Blue Care Network.
The rate increases will be across non-group health insurance plans, Medicare Supplement plans, and group conversion plans, which extend group coverage for employees after they leave their job.
Michigan’s largest insurer will also cut funding for community programs, advertising/marketing costs, and social event spending.
All together, BCBS of Michigan expects to save between $300 and $400 million, wrote the Free Press.
It’s been a cold winter here in the Midwest, and it’s only looking colder…