PROVIDENCE, RI – As part of its ongoing commitment to operate as efficiently as possible and moderate the long-term cost of healthcare in the state, Blue Cross & Blue Shield of Rhode Island (BCBSRI) has taken a number of actions over the last several years that are helping to moderate the cost of health insurance. Like any responsible business, BCBSRI regularly evaluates the cost efficiency and effectiveness of the organization’s staffing structure and, as a result, has eliminated 43 positions throughout the company, effective immediately. Sixty percent of the workforce reductions were management positions.
“After a thorough review of our business, we identified opportunities to improve efficiency and streamline the company’s management structure—from vice presidents to team leaders—in order for managers to make decisions more quickly, reduce the distance between management and customers, and have consistent accountability across all levels of the organization,” said Kim Reingold, BCSBRI spokesperson. “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 also noted that BCBSRI’s efforts to successfully reduce administrative costs and expenses have produced approximately $12 million in savings over the past two years. While these savings have allowed the company to become more efficient and contributed to the lower than expected premium increases for customers and members, it simply has not been enough. This management review was necessary to ensure that we are structured in a way that ensures we are in the best position possible to move our continued efforts forward on transforming the local healthcare delivery system to improve access to affordable, high quality healthcare.
Despite these today’s announcement, the company continues to be one of the largest employers in the state with over 1,000 employees.
Blue Cross & Blue Shield of Rhode Island is the state’s leading health insurer and covers more than 600,000 members. The company is an independent licensee of the Blue Cross and Blue Shield Association. For more information, visit BCBSRI.com and follow us on Twitter @BCBSRI.