May 2009
Horizon Blue Cross Blue Shield of New Jersey Announces Cost Reduction Initiatives to Weather Economic Downturn
(Newark, NJ, May 04, 2009)
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Horizon Blue Cross Blue Shield of New Jersey today announced it has taken a number of cost reduction initiatives over the past few months, including the elimination of 253 jobs, to reduce operating expenses as a result of the continuing economic downturn. The elimination of jobs will affect 170 employees, who were notified today. The remaining 83 jobs being eliminated are open positions that will not be filled. Horizon BCBSNJ said the reduction actions announced today will not affect its commitment to high quality customer service. For the first time in nearly a dozen years, Horizon BCBSNJ is forecasting flat enrollment for the year due to rising unemployment and employer benefit cutbacks. The loss of enrollment has affected Horizon BCBSNJ’s revenue and operating income. Over the past few months, Horizon BCBSNJ has taken a number of actions to reduce operating expenses, including reductions in advertising, travel and other administrative costs, and reducing or eliminating pay raises for employees. While these actions were necessary to address falling revenues, the company said it remains financially strong with a Standard & Poor’s “A-” rating and with adequate reserves to protect policyholders. “The current economy has forced us to make difficult decisions in order to reduce operating expenses and maintain our financial stability so that we continue to serve our 3.6 million members effectively,” said William J. Marino, President and CEO of Horizon BCBSNJ. “The majority of actions we have taken are not related to staffing, but, unfortunately, layoffs have become necessary. Our employees are the foundation of our success and we acknowledge the personal impact this will have on those affected, but we believe these actions are critical to meet our commitment to our members and for the long-term success of the company.” All of the employees laid off today will receive severance packages as well as outplacement assistance. The company announced that it is continuing to identify organizational and operational improvements to increase efficiency, which could lead to additional layoffs later in the year. ### About Horizon Blue Cross Blue Shield of New Jersey
Horizon Blue Cross Blue Shield of New Jersey is the oldest and largest health insurer in the state serving over 3.6 million members. Horizon BCBSNJ is New Jersey's only not-for-profit, health services corporation and is headquartered in Newark with offices in Wall, Mt. Laurel, and West Trenton. Horizon BCBSNJ provides a broad array of health and dental insurance products and services for individuals and small and large companies, including national companies headquartered in New Jersey. Horizon BCBSNJ is committed to improving the health care experience for all the communities we serve as well as helping our members become and stay healthy. Horizon BCBSNJ’s Web site is located at
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