Blue Cross-Blue Shield of Michigan says it will lay off as many as a thousand of its workers this year and will seek higher premiums for more than 400,000 of its subscribers. The company says it has no choice because it's losing money selling insurance to people who buy individual policies instead of getting coverage through their employer. That's the fastest-growing segment of the market.

Blue Cross Vice President Andy Hetzel says the company will also cut spending on salaries, advertising, entertainment, lobbying, and charitable giving. Blue Cross will ask state regulators to approve double-digit rate hikes for subscribers in the individual market. That includes gap coverage for elderly customers on Medicare.

Last year the state lawmakers deadlocked on re-writing the rules to make it easier for Blue Cross to compete with for-profit companies in the individual health insurance policy market. But critics said the proposed reforms would have made it too easy for Blue Cross to raise its rates.