Arkansas
Arkansas Blue Cross & Blue Shield Lays Off About 75 Workers, Reports $100M Loss
The Arkansas Blue Cross & Blue Shield building in Little Rock (Michael Pirnique)
Arkansas Blue Cross & Blue Shield sent layoff notices to 2% of its workforce — about 75 employees — on Thursday after reporting a loss of more than $100 million in the first three quarters of 2024, the state’s dominant health insurance carrier confirmed.
The Little Rock nonprofit had 3,375 employees as of April 2024, and its $3.14 billion in 2023 revenue put it at the top of Arkansas Business‘ most recent list of the state’s largest private companies.
But revenue in the first three quarters of 2024 was down by almost 7%, and the company (officially USAble Mutual) reported to the Arkansas Insurance Department a net loss of $100.5 million for those nine months. That compares with net income of $94.7 million for the same period in 2023, although the year finished with net income of just $13.2 million.
“The reduction in workforce was due to changing conditions in the market and increasing financial pressures primarily due to health care costs jumping to the highest levels in more than a decade,” Max Greenwood, an ABCBS spokeswoman, said in response to email questions Thursday afternoon.
ABCBS also has seen “large increases” in the use of all medical services, especially prescription drugs.
“These situations have caused necessary shifts in business strategy across the health care and health care insurance industries,” she said.
In addition, the insurance company lost tens of thousands of members as result of the state’s disenrollment of tens people on Medicaid in 2023.
As part of the Obama-era Medicaid expansion, the state pays private insurers to provide health insurance policies to qualifying Arkansans under the Arkansas Health & Opportunity for Me program, or ARHOME. This program had been known as the “private option” and Arkansas Works.
In January 2023, ABCBS had about 207,000 ARHome members. By December 2024, it was down to 108,729, Greenwood said.
“We’ve also seen a drastic increase in the claims amounts among our ARHome population,” she said. “Remember, since we were the first company who offered ARHome policies statewide when the program began, our block of members in that program is older and most likely unhealthier than what other carriers may be experiencing.”
ABCBS’ premium revenue fell during the first three quarters of 2024. It reported $2.2 billion premiums collected net of reinsurance through Sept. 30, a 4.8% drop from the same period in 2023.
The insurance company’s total members also fell from 630,444 on Dec. 31, 2023, to 598,492 on Sept. 30. The biggest drop came from its comprehensive individual plan. In that group, the total members fell nearly 17% to 132,596 members.
ABCBS also laid off 85 employees in January 2024. Those positions have not been refilled, Greenwood said.
She said it was too early to tell what the financial numbers will look like for the fourth quarter, which ended Dec. 31. No additional layoffs are planned at this time.
“Every executive vice president was asked to make reductions in their areas,” she said.
Greenwood said the insurance company has made several other budget-tightening moves for 2025. “We’ve reduced our budget by more than 7% including cuts to consulting and outside vendor costs, contract labor, software and equipment and facility costs,” she said. “We’ve also had to implement substantial premium increases on our small and large groups.”
Greenwood said the company has a strong balance sheet and has no concerns about its liquidity.
Founded in 1948, Arkansas Blue Cross & Blue Shield offers health and dental insurance policies for individuals and families.
After a cool/chilly morning that started in the 40s and 50s, Tuesday will warm to the upper 70s and low 80s with nothing but sunshine all day long.
There will be a weak front passing through Arkansas on Wednesday. There will briefly be a few clouds along the time the front actually passes through. But once the front clears, it will once again become sunny.
Starting Friday and lasting through the weekend and into next week a strong south wind will set up. That will warm Arkansas into the mid and upper 80s and introduce a higher level of humidity. It will feel a little like Summer this weekend. Rain chances will return to Central Arkansas starting on Sunday.
With a big upper-level system and cold front approaching early next week, the rain and thunderstorm chance will go up Monday, Monday night and Tuesday. Some strong to severe storms may occur Monday evening. The front will become stationary on Tuesday which will prolong the rainy period and overall help the drought situation Arkansas is facing.
NORTH LITTLE ROCK, Ark. (KATV) — Purple is the color of the month in Arkansas, and Lupus Awareness Month is bringing a busy stretch of events, including a mayoral proclamation and a smooth jazz concert featuring acclaimed saxophonist Merlon Devine.
A proclamation for Lupus Awareness Month is set for 6 p.m. in North Little Rock, with Mayor Hardwick expected to present it. Organizers encouraged lupus warriors and supporters to come out.
Anita Boone, President of the Lupus Foundation of Arkansas Inc. and a former lupus warrior, described the day-to-day reality of living with the disease: “One minute you’re feeling amazing, the next minute your body is saying we can’t do this.”
Lupus is an autoimmune disease, described during the interview as a condition where the immune system attacks the body “inside out.” It can affect organs throughout the body, including the brain, lungs, heart and kidneys. Boone also shared personal impacts, saying, “I am losing, actually, ear from hearing, just because of lupus.”
The Lupus Foundation of Arkansas is also inviting the community to a Lupus Smooth Jazz Concert this Sunday, May 17, at 3:30 at The Space with Grace event venue, 2005 Main St., North Little Rock.
Gale Davis, committee chair for the Lupus Smooth Jazz Concert shared details about the concert.
Davis said guests are encouraged to “dress to impress,” though formalwear isn’t required. The event will include a photo backdrop, light hors d’oeuvres and beverages, and sponsored tables aimed at networking. It’s also a chance for people to meet other lupus warriors, learn more about the foundation’s work, and watch a video presentation highlighting events from the past year.
The featured artist, Merlon Devine, was described as an acclaimed saxophonist known for a soulful, smooth jazz sound, with a career spanning more than two decades and performances across the country and around the world. He’s also an Arkansas native who attended Little Rock Central High School. He now lives in Southern Maryland, outside Washington, D.C.
Davis said Devine’s connection to lupus is personal. She said his father had lupus and has since died, though he didn’t die from lupus. They also said Divine had a sister who died from lupus in 1981 and that he currently has two sisters living with lupus.
She also shared that, according to his doctors, Devine was born with acute asthma and underdeveloped lungs. His latest single, released last year, is called “Mercy.”
Tickets must be purchased online and will not be sold at the door. They’re available online by clicking on the flyer. Prices are $40 for individual tickets, or $400 for a table of nine, with an option to sponsor a table.
Organizers also noted another proclamation is planned for the Little Rock side with Mayor Frank Scott tomorrow, and encouraged people to follow the Lupus Foundation of Arkansas on social media for updates.
The concert will take place this Sunday at the Space With Grace Venue in North Little Rock.
ASHLAND TOWNSHIP, Mich. — An Arkansas man died after crashing a dirt bike on Sunday.
The 21-year-old Arkansas man, formerly from Newaygo, crashed into a tree while riding a dirt bike on private property in Ashland Township near Grant on Sunday before 2:30 p.m., according to Michigan State Police (MSP) troopers.
Emergency responders tried to save his life but he died at the scene.
Troopers are still investigating but do not suspect drugs or alcohol as factors in the crash.
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MSP did not initially release any additional information.
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