Arkansas Blue Cross & Blue Shield ABCBS, operating under the name USAble Mutual, has laid off approximately 75 employees, representing about 2% of its workforce.
This move comes in the wake of significant financial struggles, with the company reporting a net loss of $100.5 million for the first three quarters of 2024.
In contrast, it had a net income of $94.7 million during the same period in 2023.
The company cites rising healthcare costs, particularly for prescription drugs and a general increase in medical services, as well as a loss of tens of thousands of members following the state’s Medicaid disenrollment in 2023.
ABCBS spokeswoman Max Greenwood explained that the workforce reduction was a response to the “changing conditions in the market” and growing financial pressures.