News Summary
BlueCross Blue Shield of Tennessee has announced plans to lay off 95 employees and eliminate 28 vacant positions as part of cost-cutting measures due to rising insurance costs. The layoffs will begin in September and extend until early 2026, alongside the closure of unfilled positions. The company is also winding down operations at its Shared Health subsidiary. These layoffs reflect a larger trend in the healthcare industry facing economic challenges, impacting both employees and the local economy.
Tennessee – BlueCross Blue Shield of Tennessee (BCBST) has announced plans to lay off 95 employees and eliminate 28 vacant positions in response to escalating insurance costs. The decision was communicated to employees on a Friday morning, marking a significant step for the company as it manages rising claims costs that have surged since the latter half of 2024.
The layoffs will be implemented in phases, starting in September 2023 and continuing until early 2026. In addition to the layoffs, BCBST is closing several positions that are currently unfilled, reflecting a broader effort to adapt to the current economic challenges faced by the healthcare sector.
Dayla Qualls White, BCBST’s senior vice president and chief communications officer, shared that the company is offering generous severance packages and job search assistance to those affected. The layoffs come shortly after BCBST announced a prior round of layoffs in July 2023, which involved approximately 150 employees, with that process beginning just weeks ago on September 1.
Background and Impact
BCBST’s recent layoffs are part of a larger trend within the healthcare industry, where rising operational costs are prompting several companies to make difficult staffing decisions. Notably, other organizations in Tennessee, including Vanderbilt University Medical Center, have also faced similar layoffs and operational cutbacks. Compounding the situation, BCBST has been actively looking to cut operational spending by reducing non-essential travel and reviewing third-party contracts to streamline costs.
In 2022, BCBST processed 58 billion claims, amounting to over $20 billion, for approximately 3.3 million members. As one of Chattanooga’s largest employers, BCBST has about 4,200 of its 6,700 employees situated in the region. This makes the layoffs particularly impactful for the local economy, as the company plays a significant role in employment in the area.
Shared Health Divestiture
In the context of these layoffs, BCBST is also winding down operations at its Shared Health subsidiary, which has serviced around 5,500 members in Mississippi and Texas. Some employees at Shared Health are expected to remain until 2026 to ensure a smooth transition for those members until their coverage terms conclude.
Broader Economic Challenges
The layoffs at BCBST are not unique, as the region has seen other companies such as Astec, Wacker Chemical Corporation, and Miller Industries making similar staffing reductions in recent months. Additionally, BCBST has explored various cost-cutting measures, including the potential sale of its headquarters on Cameron Hill, to alleviate financial pressures.
The company has maintained a largely remote or hybrid working model, a contrast to many local businesses that have reverted to more traditional in-person operations. This strategic decision reflects ongoing adaptations to workforce management in response to the changing landscape of the healthcare industry amidst economic turbulence.
The impact of these layoffs will extend beyond the affected employees to the community and the healthcare market in Tennessee, as BCBST continues to navigate the challenges posed by rising costs and changes in consumer needs.
Deeper Dive: News & Info About This Topic
- Tennessean: BlueCross BlueShield Layoffs
- Local 3 News: BCBST Laying Off More Employees
- Times Free Press: BCBST to Lay Off 95 Employees
- Local 3 News: Update on BCBST Layoffs
- WDEF: BCBS Announces Job Cuts
- Wikipedia: Blue Cross Blue Shield
- Google Search: BlueCross BlueShield Tennessee layoffs
- Google Scholar: BlueCross BlueShield Tennessee
- Encyclopedia Britannica: Health Insurance
- Google News: BlueCross BlueShield Tennessee layoffs
Author: STAFF HERE KNOXVILLE WRITER
The KNOXVILLE STAFF WRITER represents the experienced team at HEREKnoxville.com, your go-to source for actionable local news and information in Knoxville, Knox County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Dogwood Arts Festival, Big Ears Festival, and Knoxville Asian Festival. Our coverage extends to key organizations like the Knoxville Area Chamber Partnership and United Way of Greater Knoxville, plus leading businesses in healthcare, education, and energy that power the local economy such as Covenant Health, University of Tennessee, and Tennessee Valley Authority. As part of the broader HERE network, including HEREBristol.com, HEREChattanooga.com, HEREMemphis.com, and HERENashville.com, we provide comprehensive, credible insights into Tennessee's dynamic landscape.
