NC Blue Cross Aims for 20% Overhead Cut

The head of Blue Cross and Blue Shield in North Carolina wants to cut about $200 million from the company's $1 billion annual budget by 2014, which may mean eliminating open positions, early retirements, streamlining operations, and other steps, he said this week. The company raised premium rates for individual members an average of 12% this year, and hopes the administrative cuts will allow it to keep premiums from rising while improving financial results.