Highmark conducting ‘staffing changes,’ including severance packages, 10 months after merging with Blue Cross of NEPA

April 20--WILKES-BARRE -- Rumors of layoffs and severance packages at Highmark Blue Cross Blue Shield have begun circulating barely 10 months after the insurance giant took over Blue Cross of Northeastern Pennsylvania with a promise to keep local jobs for at least 18 months.

Employees approached on break declined comment, though one quipped saying anything "could get you on the list."

Corporate spokesman Anthony Matrisciano confirmed changes are afoot, including the offer of severance packages. But he also noted via email that jobs have been added.

"Following the merger, there have been changes in our business needs and changes to how our staffing is allocated to meet those business needs," Matrisciano wrote. "In addition, some leadership roles in the NEPA region were no longer necessary following the merger. Like many other businesses, Highmark offered employees in those roles severance packages for their time of service to the company.

"As business needs continue to change, however, our goal is to add jobs in the NEPA region. We recently hired more than 30 customer service representatives to meet these changing needs."

Blue Cross of NEPA merged into Highmark officially in June of last year, with the management of the smaller local Blue insisting the market had become too competitive for its survival in a world dominated by multi-state players like Highmark and Aetna.

BC NEPA officials also pointed out the two companies already had various agreements regarding several services, saying the merger was a natural progression.

At the time, the merger meant about 550,000 health plan members in BC NEPA's 13-county coverage area joined more than 4 million Pennsylvania members in Highmark, one of the 10 largest health insurers in the country.

And that's a small part of Highmark's total business. According to a report prepared by Blackstone Advisory Partners L.P. prior to the merger, Highmark had "more than 34 million customers across product lines."

Preceding the finalization of the deal, talk frequently turned to protecting an estimated 750 jobs in the area.

As much as a year before the merger was completed, BC NEPA Senior Vice President Brian Rinker said that, upon approval of the deal, all employees in good standing would be guaranteed employment or their current compensation for 18 months, and that some positions would be guaranteed for four years.

During testimony before state Insurance Commissioner Michael Consadine about seven months before the merger concluded, then-BC NEPA President Denise Cesare said the merger deal included a promise by Highmark that "for a period of 18 months all of the employees with the organization for one year prior to approval (of the merger) are protected."

Asked how many employees have been laid off or offered severance packages, and how it all fits into the promises to retain workers, Matrisciano declined to give numbers, but said the terms of the deal are being honored.

"The merger agreement maintains a vibrant workforce in the NEPA region for the immediate future. We are on track to meet that commitment," Matrisciano wrote. "And as Highmark's business grows, we are hopeful that additional jobs will be located here in NEPA."

Reach Mark Guydish at 570-991-6112 or on Twitter @TLMarkGuydish

___

(c)2016 The Times Leader (Wilkes-Barre, Pa.)

Visit The Times Leader (Wilkes-Barre, Pa.) at www.timesleader.com

Distributed by Tribune Content Agency, LLC.