Blue Cross Blue Shield of North Carolina chief executive Brad Wilson issued a memo to employees last week titled “Our urgent need to change.” He was referring to his company, but his thoughts apply to all health plans.
BCBS-NC will cut costs, diversify into new businesses and squeeze providers to remain “competitive and relevant.” I expect similar soul-searching from other plans as the forces of healthcare reform, a hostile Administration, and a deteriorating commercial risk business hammer industry profits.
“We are going to be a leaner, more focused company,” Wilson said. Leaner? Yes. More focused? No. In fact, the company is committing to further diversification. Semantics aside, other plans will follow this prescription.
Extended coverage appears in the July 19 issue of Carl Mercurio’s Health Plan Market Trends Letter.
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