The board of directors of Arkansas Blue Cross & Blue Shield has awarded employees 50% of their target bonuses for the year despite the health insurance giant suffering a $100 million loss through the first three-quarters of 2024 and sending layoff notices to 75 workers.
But the nonprofit health insurance company’s executive leadership, including vice presidents, lead executives and C-suite officers, are not receiving a bonus for 2024, a company spokeswoman told Whispers via email. The partial bonuses are being awarded only to middle-management employees and below. ABCBS had 3,375 employees as of April 2024.
“Recognizing the diligent work of Arkansas Blue Cross employees serving our members, despite a difficult year, the Board elected to fund the corporate incentive payment pool at 50% of the target amount,” spokeswoman Kerri Nettles said via email.
There is a formula for potential bonuses.
“Employee compensation, including corporate incentive payments, are a part of Arkansas Blue Cross’ commitment to retaining the best talent to ensure we are providing high quality service that meets members’ needs,” she wrote. “These incentives are determined based on a balanced scorecard including customer satisfaction, employee engagement and other key operational metrics. Financial performance is one element, but not the only driver.”
The bonuses will be paid this month.
ABCBS’ year-end financial numbers weren’t available as of Tuesday.
Sources have told Whispers that the loss deepened from the $100 million reported as of Sept. 30. Nettles said the year-end numbers are still being finalized.
Sign up for Daily E-news
