BCBS of Michigan lays off 22 workers

Blue Cross Blue Shield of Michigan has laid off 22 employees in its IT department, according to Crain's Detroit Business.

The reduction is part of BCBS of Michigan's plan to slash $300 million in expenses by 2018. The insurer has laid off 47 employees and at least three contractors since last November.

"Continued automation of some IT functions and replacement of declining technologies were factors that ultimately affected these positions," Andy Hetzel, vice president of communications, said in an email, according to Crain's. "Additionally, our efforts to improve our IT processes are resulting in work that is lower value, redundant and unnecessary being eliminated or consolidated within our IT work teams."

Still, the plan to fix the insurer's finances is a work in process. Last month, BCBS of Michigan reported the highest earnings decline for the first three quarters of 2015 among the nation's 35 BCBS plans. BCBS of Michigan also reported a $68 million loss in net income for 2015, according to Crain's.

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