Nik Rajkovic / news@whmi.com

Blue Cross Blue Shield of Michigan is offering buyouts to eligible employees as it copes with financial strain from rising prescription drug prices.

Nonunion employees have until the end of the month to accept a voluntary separation offer.

The initiative is part of the company's plan to slash $600 million in administrative costs during the next several years.

In a statement from company spokeswoman Meghan K. O’Brien, BCBSM said: "Our company has lost more than $1 billion on our core health insurance business in two years, and these costs are now weighing heavily upon our ability to continue providing affordable health coverage. As a nonprofit mutual health insurer, we must manage our finances responsibly, with the interests of our customers and members front-and-center. As we take double-digit premium increases out to our fully-insured customers now to account for the higher costs we are experiencing, we have a responsibility to look inward and take steps to lower our own costs."

BCBSM said that its voluntary separation offer will help it continue to manage costs and assist employees who are considering retirement or other opportunities.

"This offers a financial incentive for eligible non-bargaining unit employees, including more than 700 who will be retirement eligible in 2025, who wish to consider stepping away from employment," the statement read. "This will help reduce the impact of administrative cost reductions on the rest of our workforce."

In June, the insurer said it would no longer cover GLP-1 drugs for large group fully insured plans as of Jan. 1. Health plans across the country have adopted similar practices due to the exorbitant cost of GLP-1 drugs in the country.