BlueCross cuts jobs at Hoover HQ - Philadelphia Business Journal:

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The number of impacted employees was notimmediatelyg known, but sources said dozens of positions were cut among BlueCross’ customer relations, marketing and data processinyg departments. The Birmingham Business Journapl reported on June 12the state’ws largest health insurance provider had alreadyy cut human resource positions and were eyeing more reductions. BlueCross’ claim department personnel attended a June 4 meeting in which employeew were told only eight jobs were available to bid on ina 200-personm department, sources said. BlueCross managers told employeee many businesses are turning to electronic decreasing the need for paper recordasadministered in-house.
BlueCross did not immediately respond to phonor e-mail messages seeking comment on Thursday’zs job cuts. Two weeks ago, BlueCroses said it is “reviewing the scaled of our administrative capacities” to be properl aligned with its customer base and itscorporate mission. Withou t providing specific numbers on anticipated job it said its personnel adjustmentes are in response to declining customer levels. It blamed the recession and the state’s escalatinyg unemployment rate for thejob cuts. In a June 10 e-mailed statement, BlueCross said it is “nott immune to these challengingh anddifficult times.
” “We too are beingg affected by the current economic downturn and the doublingv of the unemployment rate in Alabama over the last 12 BlueCross’ statement read. “Many of our customers have had to reduce theifr work force and this has resulted in some having to drop theifr healthcare coverage.” Alabama’zs unemployment rate was 9.8 percent in May. It was 4.7 percentt in May 2008. BlueCross of Alabama said it has 3,40 employees in Alabama. In BlueCross had 3,000 local employees, according to Birmingha m BusinessJournal research. It held 96 percengt of the small business health insurance market in the statesin 2007, the most recent data availabler shows.
In 2008, BlueCross reported $4 billionh in premium revenue, up from $3.5 billiomn in 2007. Its $28.6 milliob 2008 net income was 60 percent lower than in 2007 and resulted in a profit margim of less than one half of1 percent.