UnitedHealth Group is offering a voluntary separation package to thousands of employees, anonymous workers are posting on social media and layoff forums.
Employees said they left departmentwide meetings Feb. 17 where they were offered a severance plan. The workers estimate around 30,000 employees are eligible for the severance option.
These reports were confirmed by Health Payer Specialist. UnitedHealth Group is offering a voluntary separation package to thousands of employees, anonymous workers are posting on social media and layoff forums.
Employees said they left departmentwide meetings Feb. 17 where they were offered a severance plan. The workers estimate around 30,000 employees are eligible for the severance option.
These reports were confirmed by Health Payer Specialist. The company’s benefits operations unit is one of the divisions offered the buyout, CNBC reported. Workers have until March 3 to take the buyout. They then risk getting laid off at the company’s discretion by May 1, though some employees may be kept through mid-November.
“This voluntary option is part of our ongoing efforts to ensure our team is best positioned to meet the evolving needs of the people and customers we are honored to serve,” a UnitedHealth spokesperson told Fierce Healthcare in a statement. “We continue to grow our workforce and hire talent based on the needs of our business.”
A screenshot of a separation benefits agreement was posted on Reddit Feb. 17. It shows how much severance an employee is eligible for based on the number of years they’ve worked and job title. For some employees with three years or less at the company, they would receive seven weeks of base pay. The information in the screenshot has not been independently verified by Fierce Healthcare.
Last year, UnitedHealth’s Optum discontinued its telehealth business Optum Virtual Care, cut workers in its naviHealth division and downsized the footprint of at-home medical care company Landmark Health in every state.
Anonymous employees online suggest these layoffs could be a result of the company’s desire to offshore jobs. Others felt the business is facing new challenges, including the fallout from the Change Healthcare cyberattack, the growing likelihood enhanced subsidies from the Affordable Care Act will expire at the end of the year, renewed skepticism from lawmakers surrounding PBMs and consolidation in the insurance sector and general uncertainty around the new administration’s approach toward Medicare Advantage.
The company reported $5.5 billion in profit in the fourth quarter. Profits shrunk from $22.4 billion in 2023 to $14.4 billion for 2024.
There are still plans for UHG to buy home healthcare provider Amedisys in a $3.3 billion merger. The Biden administration argued the acquisition would hamper competition.
UnitedHealthcare named Tim Noel the company’s newest CEO last month. Brian Thompson, the former CEO, was killed in December, and 26-year-old Maryland native Luigi Mangione has been charged with Thompson’s murder. The shooting has increased scrutiny on prior authorization denial rates and general anger toward health insurers.
In January, Blue Cross Blue Shield of Michigan offered buyouts to 700 of its employees, in an effort to shed $600 million in administrative costs over several years to combat increased medical utilization and rising prices for prescription and specialty drugs.