Blue Cross RI axes 43 jobs to cut costs

PROVIDENCE, R.I. (WPRI) - Blue Cross & Blue Shield of Rhode Island eliminated 43 jobs on Wednesday, WPRI.com has confirmed.

Blue Cross spokeswoman Kimberly Reingold said the jobs were cut across the company and estimated more than 25 of them were management positions. The layoffs are effective immediately.

"While decisions like this are never easy, BCBSRI is committed to regularly evaluating our operations to ensure we function as efficiently as possible without sacrificing quality of service for our members," Reingold said in a statement.

This is at least the fifth round of job cuts at Blue Cross since Rhode Island’s economy began to weaken more than five years ago. The insurer previously disclosed the elimination of 39 jobs in September 2007, 74 jobs in 2008, 103 jobs in July 2010 and 42 jobs in November 2011.

Blue Cross & Blue Shield of Rhode Island, founded in 1939, has more than 600,000 members and more than 1,000 employees, according to its website. The company moved into a new $90-million, 13-story headquarters overlooking Waterplace Park in Providence in 2009.

Reingold said Blue Cross has saved about $12 million over the past two years by cutting administrative costs and expenses, but a recent management review found that more cutbacks were needed, which led to the job losses. The insurer hired a new president and CEO, Peter Andruszkiewicz, last year.

Blue Cross is by far the most dominant health insurer in Rhode Island, covering 79 percent of the state’s insured population as of 2007, according to the American Medical Association. Second-ranked UnitedHealth Group Inc. covered just 16 percent.

Ted Nesi ( tnesi@wpri.com ) covers politics and the economy for WPRI.com and writes the Nesi's Notes blog. Follow him on Twitter: @tednesi