Elevance Health

Sep 8, 2025

It will also eliminate 28 vacant positions Share BlueCross BlueShield of Tennessee (BCBST) announced plans to lay off about 95 employees and eliminate 28 vacant positions as the insurer adjusts to rising claims costs. Dalya Qualls White, senior vice president and chief communications officer at BCBST, said claims expenses began to rise in the second half of 2024 and have continued to escalate in 2025. She said the company no longer views the trend as temporary and determined that reducing staffing levels was necessary to meet ongoing challenges. Employees affected by the layoffs were notified on Friday, multiple media outlets reported. White said BCBST is providing several weeks' notice, severance pay and job placement assistance. She added that the decision reflects pressures facing the broader health insurance industry, where many carriers have been forced to cut costs in response to growing financial losses. Across the country, insurers have reported that higher utilization of medical services, along with inflationary pressures in health care, are driving up claims. UnitedHealth Group, the nation’s largest health insurer, reported in 2024 that outpatient care costs were rising more quickly than expected, particularly in areas such as orthopedic procedures and behavioral health services. Humana also pointed to higher medical utilization as a key factor behind its weaker-than-anticipated earnings, while Elevance Health highlighted the impact of expensive new treatments and higher prescription drug costs on its bottom line. These challenges have pushed insurers to reassess their operating expenses and implement cost-control measures. Some have scaled back hiring or reduced staff, while others have looked to adjust plan benefits and provider contracts. The aim, industry analysts say, is to manage expenses without disrupting access to care or long-term growth plans. White said that despite the workforce reductions, BCBST remains financially stable and better positioned than some of its peers because it acted quickly to address the trends. She said the company views the changes as necessary to sustain its ability to serve policyholders while adapting to a more challenging cost environment. The staffing cuts at BCBST reflect a broader recalibration within the health insurance industry as carriers work to balance rising costs with operational efficiency. Industry observers expected cost pressures to remain throughout 2025, forcing insurers to continue searching for ways to stabilize performance. Related Stories