There’s been a lot of churn at Blue Cross Blue Shield of Michigan (BCBSM) this week.
About 1,000 workers who are represented by the UAW went on strike Wednesday, and the next day, Daniel J. Loepp, BCBSM’s president and CEO, announced that he will retire. Neither the UAW nor BCBSM responded to Fierce Healthcare’s request for comment.
Loepp, who's been with the company for more than 20 years, will step down from the role on Dec. 31, 2024, the insurer announced.
In a press release, BCBSM said that during his tenure, “Loepp transformed the company from a large single-state health insurance plan and workers’ compensation subsidiary to a modern, diversified, multi-company enterprise of national scale.”
In doing so, Loepp more than doubled revenue for the company—from $15.3 billion in 2005 to $32.8 billion in 2022. Under Loepp, BCBSM also engineered a partnership with Blue Cross and Blue Shield of Vermont and in 2011 became a minority owner of the Medicaid managed care company AmeriHealth Caritas.
Those moves, along with another partnership forged in 2022 with AmeriTrust Group, allows BCBSM to offer a diverse menu of services, according to the press release.
Loepp’s been generously compensated for his accomplishments, a fact that striking BCBSM workers point out on the picket line in Lansing, Michigan. Loepp earned $16.9 million last year, according to the Detroit Free Press.
BCBSM workers walked out over a company mandate saying that employees must work for the insurer for 22 years before they can get a pay hike for their positions. In addition, the UAW alleges that there’s been a 40% decrease in BCBSM union membership because the health plan keeps outsourcing jobs or contracting with vendors.
BCBSM spokesperson Helen Stojic said that it was the UAW that walked away from negotiations.
“Blue Cross has put contingencies in place to enable our company to continue to provide services to providers, group customers and our millions of members around the nation,” Stojic said in a statement. “Some of those services—particularly those provided over the phone—will require longer wait times. We encourage our members and customers to use our online and app-based services during this period, and we regret the inconvenience caused by this situation—which we desire to resolve quickly, consistent with the spirit of collective bargaining, with our partners at the UAW.”
UAW workers at BCBSM aren’t the only UAW workers on strike. Today, nearly 13,000 workers at GM, Ford and Stellantis walked out after contract negotiations broke down.