Highmark gives number of employees in former BCNEPA area: 797

Sept. 24--For months rumors have persisted that Highmark Blue Cross Blue Shield has been laying off area employees since the insurance giant took over Blue Cross of Northeastern Pennsylvania, and the company responded only with general comments about maintaining a promise to avoid layoffs for 18 months.

On Friday Highmark Health CEO David Holmberg gave a solid number of employees working in the former BCNEPA area: 797. He offered the figure in response to a question after a teleconference touting Highmark's financial successes the first half of this year.

"Things are going well in the northeast part of the state," Holmberg said when asked about the status of the region since the takeover became official June 2, 2015. He said the 797 employees in the 13-county market formerly served by BCNEPA include those working with the medical, dental and vision insurance parts of Highmark.

When Highmark was seeking state approval for the acquisition of BCNEPA, it promised to protect the jobs of employees with at least one-year in BCNEPA for 18 months, but the number of employees falling under that promise was never revealed.

Holmberg said Highmark is meeting "the minimum requirements" of the deal, and praised the employees that came with the acquisition. "We're very pleased with the quality of the talent that came with the merger, and we're looking to expand their reach into other parts of the country we serve," he said.

Talk of layoffs, he said, may result as the BCNEPA workers "become part of a larger enterprise with a much more diverse set of businesses. They are being asked to do things differently than in the past, and some are transitioning to where their capabilities can help across the business."

Overall, Holmberg reported an increase in total revenue from $8.67 billion to $9.26 billion the first six months of this year compared to the first six months of 2015.

The company has received more income than expenditures, despite continued losses in the Allegheny Health Network in western Pennsylvania, and losses in policies sold through the federal Health Exchanges set up through the Affordable Care Act.

Holmberg said losses in both have been reduced and expressed some optimism that problems causing the losses will be fixed.

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

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