Five months after completing a merger with Blue Cross of Northeastern Pennsylvania, Highmark has cut 60 jobs throughout its service area in Pennsylvania, Delaware and West Virginia, a spokesman confirmed.
Aaron Billger, spokesman for the Pittsburgh-based private health care company, said the job cuts this week were the “result of organizational changes that were designed to increase efficiencies and streamline operations.”
Mr. Billger would not say how many jobs were eliminated in Wilkes-Barre or break down the job cuts by a specific market. He said Highmark, the largest health insurer in Pennsylvania, employs about 18,200 people.
Since July 1, he said Highmark has hired more than 600 employees and currently has more than 400 open positions. The job cuts range from operational jobs to professional support staff, he said.
“We are always looking at ways to create more efficiencies when servicing our customers,” Mr. Billger said. “These organizational changes were designed to streamline operations to better serve our members.”
In addition to being a health insurance provider, Highmark also is a dental and vision insurer and offers supplemental health care products, Mr. Billger said. Displaced employees were offered severance packages and outplacement support, he said.
Highmark completed the merger with Blue Cross of Northeastern Pennsylvania on June 1 after securing approval from the Pennsylvania Insurance Department.
As part of the merger agreement, Highmark has agreed to maintain operations and “substantial” staffing levels in the region.
The company has two buildings at 19 and 70 N. Main St. in downtown
Wilkes-Barre that remain key operations. Since the merger, the company changed the name on the buildings to its new name, Highmark Blue Cross Blue Shield.
Highmark Blue Cross Blue Shield provides health insurance coverage and administrative services to nearly 550,000 people in 13 counties in Northeast Pennsylvania. The company employs more than 700 in Northeastern Pennsylvania.
Highmark has a previous track record of mergers with other Blue Cross and Blue Shield companies, including affiliations with Blue plans in Delaware and West Virginia.
Date: November 7, 2015