November 6th, 2009

Reports the Philadelphia Inquirer:

More than 500 Independence Blue Cross employees have accepted early-retirement packages, as Philadelphia’s largest health insurer struggles to cut costs.

The buyout was offered to 840 employees. Most of the 530 who opted for it left last Friday. Employment at Blue Cross has declined more than 700 since the start of the year.

“Like any business in the current environment, we are taking prudent steps to manage costs and risks, including organizational streamlining,” the company said in a statement released yesterday.

“We are currently analyzing the impact of the results of the voluntary early-retirement program, and we have not made any further definitive plans regarding our future staffing needs.”

Communications to the employees said that, depending on response to the offer, “it’s possible that we may need to further reduce staffing or other expenses.”

Health insurers all over the country are shedding jobs, in tandem with major cuts by the nation’s employers. When companies lay off employees, they and their families lose their health insurance and the insurers lose business. Employment-based insurance remains the main way that people are covered.

Find out more at the Inquirer.