BlueCross BlueShield of Tennessee Plans 245 Job Cuts Amid Rising Insurance Costs

BlueCross BlueShield of Tennessee (BCBST) is undergoing significant workforce reductions due to rising insurance and medical costs impacting the company's financial sustainability. In July 2025, BCBST announced layoffs affecting around 150 employees as it planned to close its Shared Health subsidiary, which served Medicare, Medicaid, and special needs patients. In early September, the insurer revealed additional cuts involving nearly 100 employees and the elimination of 28 vacant positions, with layoffs occurring in phases through early 2026. BCBST senior vice president Dayla Qualls White emphasized the financial pressures faced by health insurers nationwide and stated the company is proactively responding to these challenges while providing affected employees with notice, severance, and job search assistance. These decisions reflect a broader industry trend of cost-cutting measures in response to persistent increases in claims and medical expenses. BCBST maintains it remains in a comparatively stronger position than many peers despite these necessary adjustments.