Capital BlueCross Eliminates 182 Jobs

John Commins, for HealthLeaders Media , April 1, 2010

Capital BlueCross announced this week that it has eliminated 182 jobs in what the Harrisburg, PA-based health insurer said is an ongoing effort to increase efficiency and lower operating costs.

"At Capital BlueCross, we have been doing what all businesses are doing during this uncertain economic time—we're looking at every way possible to be more efficient, to keep our costs down, and to be even more competitive and strong," William Lehr Jr., Capital BlueCross president/CEO, said in a media release. "Advances in technology, particularly, enable us to reduce our costs at Capital BlueCross and its subsidiary companies, while still providing award-winning service."

The health plan said its cost-control efforts have identified new technologies to improve efficiencies in operations, such as claims processing, while decreasing manpower needs.

"It is tremendously painful for this close-knit company to say goodbye to colleagues. But we are comforted by the certainty that it is necessary to do so, and that it is our obligation to do so," Lehr said. "We owe it to our customers to do everything we possibly can to put downward pressure on their rising premiums. And we owe it to our company to take the steps we must to be as efficient and competitive as we possibly can be."

Lehr said no further layoffs are planned.

John Commins is a senior editor with HealthLeaders Media.

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