'Blue Cross NC is not immune': State's largest health insurance provider offers employee buyouts to cut costs

DURHAM, N.C. (WNCN) — The health insurance provider giant announced voluntary separation packages to employees Tuesday amid financial challenges on both a company and consumer level.

Blue Cross NC sent a memo to its workers Tuesday explaining how financial pressures have led to the decision to reduce costs with the approach of separation on a voluntary basis at this time.

"For months now, we've talked candidly about the financial challenges we're navigating, and that reality has not changed," said CEO Tunde Sotunde. "While we've made real progress in reducing our operating expenses, tightening our focus, and addressing enterprise issues, we continue to fall short of our 2025 financial plan."

RELATED: Negotiations between Duke Health and Aetna continue as October deadline nears

Aside from reasons behind the company's budget, the state legislature's woes with the budget as well as general rising healthcare costs. CBS 17 previously reported back in August that over 750,000 North Carolinians could see their healthcare premiums go up under the State Health Plan, and negotiations between Duke Health and Aetna continue days before the October deadline, affecting thousands.

In a statement, Blue Cross NC addressed the voluntary separation package. Here is what they had to say:

The rising cost of health care, market volatility and legislative and regulatory pressures continue to place strain on the entire health care system, and Blue Cross NC is not immune. But what's happening with health care in North Carolina is bigger than one company. If Blue Cross NC is going to demand greater affordability from the health care system, we must start by acknowledging our own role. This is why yesterday we announced deliberate steps to reduce our expenses, including a voluntary separation program being offered to certain eligible employees. Blue Cross NC is financially strong and these actions are about safeguarding our long-term sustainability so we can continue to serve members in all 100 counties in this state. Our actions reflect our commitment to doing our part to help lower costs for the people who count on us.

Tensions have increased in the health care on the national level as the cost of health care have spiked over the years for consumers, and in turn, for providers and insurance companies. This has spawned much disdain throughout the country for everyone, including things escalating violently — from the ongoing negotiations in legislation and hospitals to the targeted shooting of UnitedHealthcare CEO Brian Thompson, and federal spending cuts spurring national protests on the streets and at the Capitol.

"I know many of you have felt the change and worked hard to deliver more with less," said Sotunde. "I acknowledge how difficult that has been while balancing the uncertainty that surrounds us."

Blue Cross NC said the "Voluntary Separation Program" will be based on age and years of service. The memo also said further steps could be taken if not enough volunteers take the offered package.