Blue Cross Blue Shield of Michigan to consolidate Lansing-area operations in 2011, moving 250 employees downtown

Move into Accident Fund building expands Blues' commitment to urban centers

October 14, 2009

LANSING - Blue Cross Blue Shield of Michigan will consolidate about 250 Lansing-area employees into downtown Lansing office space that will be available in 2011. The move will take place when Accident Fund Insurance Company of America, a BCBSM subsidiary, moves into its new national headquarters in Lansing's landmark Ottawa Street Power Station.

"We believe in Lansing, its leadership and its future," said Daniel J. Loepp, president and CEO of BCBSM. "Blue Cross and Accident Fund have long committed to invest in our urban centers. These days, as Michigan cities see jobs move out, the Blues are thrilled to be moving in."

When the moves are complete, BCBSM enterprise companies will have more than 900 employees in downtown Lansing. Accident Fund's growth into its new headquarters may create up to 500 additional positions — bringing the employee base to nearly 1,400.

BCBSM will move its Lansing-area work force into the current Accident Fund headquarters building located at 232 S. Capitol Ave., as Accident Fund's employees relocate starting in 2011. Most of the BCBSM Lansing-area employees currently are located at 1405 Creyts Road in Delta Township. That facility has been sold to Auto Owners Insurance Company, which is leasing the property back to BCBSM until the move downtown. BCBSM also will move employees from an office at 602 W. Ionia Street in Lansing. That property will be put up for sale.

"Our choice to invest in Lansing creates a lot of winners," Loepp said. "Downtown gets an economic infusion of workers and immediate occupancy of a core property, while Delta Township gets a significant property back on its tax rolls. Blue Cross generates efficiencies by combining multiple office locations into one hub, and Blue Cross and Accident Fund employees get to work in a vibrant, growing urban setting."

Accident Fund is a national provider of workers' compensation insurance, and a wholly owned subsidiary of BCBSM. A for-profit corporation, Accident Fund pays local, state and federal taxes.

The move expands the Blues' commitment to Michigan urban centers for its core business operations. Blue Cross downtown facilities in Detroit, Southfield, Grand Rapids and Marquette are the worksites for the majority of employees. The Blues employ nearly 7,000 Michigan residents.

"Investing in our cities is part of Blue Cross' commitment to a healthier future for our state and our people," Loepp said. "We have been at the center of urban revitalization in Grand Rapids and Detroit. Now we are excited about what the new Accident Fund headquarters and our new Blue Cross mid-Michigan hub will mean for the future of downtown Lansing."

Blue Cross Blue Shield of Michigan is a nonprofit corporation and an independent licensee of the Blue Cross and Blue Shield Association.