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NC Blue Cross Now Outsourcing Work to India

Alan Wolf over at the News and Observer came up with this story today – turns out NC Blue Cross is outsourcing some (they won’t say what or how much) of their IT work to India.

You see this more and more with other for-profits, but nonprofit NC Blue Cross continually reminds legislators at the NC General Assembly how much of a true-blue North Carolina company they are, involved in the community, etc., etc. This argument helps, at least in part, to make Blue such a dominant presence in the Legislature that it’s very hard for any sort of health care change they don’t like to get done.

It’s this dominance that means, for example, NC Blue Cross still has the lucrative sole, no-bid contract to serve as administrator for the 600,000 plus person state employee health plan – despite revelations that the State Plan contract helps pay for board retreats, shrimp cocktails, and lucrative executive salaries and charges 5-10 times more to process health claims than other similar state contractors.

Will this cause any heartburn with legislators? Maybe. However, legislators seem to have little problem every year with multimillion dollar salaries at the top of this nonprofit either, so maybe not.

6 Comments

  1. AdamL

    May 28, 2010 at 4:23 pm

    Wait, I thought we couldn’t change the State Health Plan contract because it would mean Blue Cross would cut jobs. I guess they meant jobs in India.

  2. Rob Schofield

    May 28, 2010 at 5:27 pm

    Maybe they could outsource the senior managemant and save a few bucks.

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  4. Lou Meyers

    May 29, 2010 at 7:32 pm

    Good idea Rob, who knows maybe they’ll even have a conscience. We tend to feed on ourselves over here.

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