August 12, 2010
Contact: Lew Borman • BCBSNC Media Line: 919-765-3005
Online Newsroom: www.bcbsnc.com/inside/newsroom.cfm
For Immediate Release
August 12, 2010
Chapel Hill – Blue Cross and Blue Shield of North Carolina (BCBSNC) today announced that it will outsource some claims data entry work and related functions as part of its ongoing effort to reduce administrative costs, resulting in annual savings of approximately $1.6 million to $2.1 million.
The outsourcing will result in the elimination of 80 to 90 BCBSNC jobs over the next nine months, with most of the job cuts expected to occur between January and May of 2011. The jobs do not involve customer service calls or direct contact with BCBSNC customers.
This action is consistent with BCBSNC plans to reduce its current operating costs by 20 percent by 2014 to keep premiums competitive and to invest in improvements. For years BCBSNC has outsourced certain functions, such as pharmacy benefit management and security for its office buildings.
BCBSNC has selected SOURCECORP for this work. SOURCECORP, which is based in Dallas, Texas, has extensive experience in records management, business processing outsourcing and consulting. Its 4,100 clients include 14 health plans.
The work being outsourced will be done by SOURCECORP employees in North Carolina and the Philippines. Data entry work for the State Health Plan will remain in North Carolina.
SOURCECORP was chosen because the company can do the work more economically while maintaining high levels of quality.
BCBSNC President and CEO Brad Wilson stated, “This is a difficult decision that will affect good employees whom we care about. It is part of our ongoing work to reduce our costs to keep premiums as affordable as possible for our customers and to remain competitive as a company.
“We have met with these employees and we will do all we can to treat them with fairness, respect and sensitivity as we make the transitions in the months to come,” Wilson added.
Employees whose jobs are eliminated will be eligible to receive severance pay, continued health benefits for a specified period of time and outplacement assistance.
As a U.S.-based company, SOURCECORP is subject to federal security and privacy regulations, as well as BCBSNC’s own contract requirements. SOURCECORP had to meet extensive data protection standards during the vendor selection process.
About BCBSNC:
Blue Cross and Blue Shield of North Carolina is a leader in delivering innovative health care products, services and information to more than 3.7 million members, including approximately 900,000 served on behalf of other Blue Plans. For 77 years, the company has served its customers by offering health insurance at a competitive price and has served the people of North Carolina through support of community organizations, programs and events that promote good health. Blue Cross and Blue Shield of North Carolina is an independent licensee of the Blue Cross and Blue Shield Association. Access BCBSNC online at www.bcbsnc.com.
# # #