Blue Cross and Blue Shield of Michigan has cut expenses by $106.5 million since it announced its three-year strategic business transformation project in November 2015 and said it is on-pace to cut a total of $300 million by 2019.
Over the past year, Blue Cross laid off more than 50 of its 7,900 employees, outsourcing some information technology and automating processes in benefits. It also plans on reducing independent agents' commissions.
For 2016, Blue Cross projects it will lose $73 million in its individual business unit. Last year, it lost $68 million on its overall operations.
Blue Cross has been trying to diversify its business lines—having some success by boosting revenue in its Medicare Advantage managed-care service line—to help subsidize its commercial individual and Medicare supplemental insurance lines, which have lost hundreds of millions of dollars in recent years.
Blue Cross of Michigan has average annual revenue of $9.7 billion.