Dozens of layoffs made at parent company of Blue Cross and Blue Shield of Illinois

The Chicago-based parent company of Blue Cross and Blue Shield of Illinois is laying off dozens of employees, the company confirmed Tuesday.

The company, Health Care Service Corporation, laid off a few dozen middle management employees Monday and Tuesday, said spokesman Greg Thompson. No information was available on how many of the layoffs were in Illinois.

“As with any large organization we’re continuously looking to evaluate our business and adapt to the needs of our members and the changing landscape and making sure we can position ourselves for growth, and to address the changing needs of our members,” Thompson said.

Health Care Service Corporation operates health insurance plans in five states, including Illinois, where its Blue Cross and Blue Shield of Illinois is the state’s dominant insurer. The company has more than 8.5 million members and more than 11,000 employees in Illinois.

Last year, Health Care Service Corporation made a profit of $4.1 billion, which included $1.7 billion the company got back from the federal government because of changes made under the new tax law.

The layoffs follow a merry-go-round of exits among the company’s leadership in recent months. Health Care Service Corporation announced in July that its president and CEO Paula Steiner would leave after leading the company since 2016. At the time, a person with knowledge of the situation said there may have been a difference of opinion between Steiner and the board about strategy and vision.

Chief Financial Officer Eric Feldstein, Chief Information Officer Steve Betts and Chief Human Resources Officer Nazneen Razi also left in recent months.

Steve Hamman, a long-time employee, is now president of Blue Cross and Blue Shield of Illinois and Maurice Smith, who was president of Blue Cross and Blue Shield of Illinois, serves as president of Health Care Service Corporation.

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