Blue Cross NC offers voluntary buyouts, citing financial pressures

Blue Cross Blue Shield of North Carolina has started offering voluntary separation packages, citing financial challenges.

Blue Cross NC shared with The News & Observer an email sent from CEO Tunde Sotunde to employees on Tuesday notifying them of the buyouts and saying that they may not be enough on their own.

Sotunde said in the email the decision came after months of discussions about financial pressures that have persisted despite cost-cutting efforts.

“Rising health care costs, market volatility and legislative and regulatory actions continue to outpace the progress we’re making. Our actions to date are simply not enough,” he said.

Making things worse, “we don’t expect the volatility in the collective healthcare system to get better anytime soon,” he wrote.

The email said that later on Tuesday, employees eligible for the Voluntary Separation Program would receive an email. The program would be offered based on age and years of service.

Buyouts may not be enough

“This step helps us move in the right direction, but it may not by itself be enough to meet our responsibilities,” he said.

Sotunde wrote that the company remains financially strong, but said lowering operating expenses is critical for keeping coverage affordable.

“For every premium dollar a member pays, about ten cents goes toward our operating expenses,” he wrote. “That ten cents may not sound like much, but across thousands of members and families, it makes a real difference in affordability.”

WRAL first reported Blue Cross NC is offering voluntary separation packages.

Blue Cross NC contracted with the State Health Plan for more than 40 years as the plan’s third-party administrator, handling administrative tasks associated with health insurance and sending claims to the state to be paid. But the plan in 2023 ended that agreement and chose Aetna as a replacement starting this year.

The N&O asked Blue Cross NC for more details on the voluntary separations, whether employees could be laid off and whether the loss of the State Health Plan contract impacted its finances.

In a statement, Blue Cross NC said, “the rising cost of health care, market volatility and legislative and regulatory pressures continue to place strain on the entire health care system, and Blue Cross NC is not immune. But what’s happening with health care in North Carolina is bigger than one company.”

“II Blue Cross NC is going to demand greater affordability from the health care system, we must start by acknowledging our own role. This is why yesterday we announced deliberate steps to reduce our expenses, including a voluntary separation program being offered to certain eligible employees. Blue Cross NC is financially strong, and these actions are about safeguarding our long-term sustainability so we can continue to serve members in all 100 counties in this state. Our actions reflect our commitment to doing our part to help lower costs for the people who count on us.”

This story was originally published October 1, 2025 at 4:47 PM with the headline "Blue Cross NC offers voluntary buyouts, citing financial pressures."

Luciana Perez Uribe Guinassi

The News & Observer

Luciana Perez Uribe Guinassi is a politics reporter for the News & Observer. She reports on health care, including mental health and Medicaid expansion, hurricane recovery efforts and lobbying. Luciana previously worked as a Roy W. Howard Fellow at Searchlight New Mexico, an investigative news organization.