UnitedHealthcare Layoffs in 2017 Continue to Add Up
As the debate rages on in the United States concerning the future of healthcare, health insurance firm UnitedHealth Group Inc (NYSE:UNH) has cut jobs from its “UnitedHealthcare” division across the country, from Phoenix to Colorado.
The UnitedHealthcare layoffs in 2017 have spiked, with hundreds of people losing their jobs throughout the year. The number of UnitedHealthcare job cuts in 2017 has now exceeded 500.
One of the major reasons for the layoffs is that the company has fallen on hard times recently. That is mainly due to losing its contract with “Tricare,” which is the healthcare insurance program for U.S. military members, veterans, and their families.
Tricare, which is controlled by the United States Department of Defense, will continue to manage veteran and military healthcare affairs as usual, but with a different insurance company administrating the program in 2018. The Tricare program cancelled its contract with UnitedHealthcare and signed a new one with rival company Health Net, Inc. (NYSE:HNT). Health Net is a company that was acquired by Centene Corp (NYSE:CNC) in March 2016.
UnitedHealthcare Cuts 381 Job Cuts in Arizona in November 2017
UnitedHealth Group Layoffs in April 2017: 119 Job Cuts in Colorado
Other Health Insurance Layoffs in 2017
Humana Inc (NYSE:HUM) is similarly laying off hundreds of employees in an effort to offset the financial losses that the company incurred following a failed merger with health insurance company Aetna Inc (NYSE:AET). Humana’s downsizing amounted to more than 700 people losing their jobs.
Molina Healthcare, Inc. (NYSE:MOH) cut 400 jobs in September. These layoffs came after the company reported a $230.0-million loss in its second-quarter financial results. Cost-cutting measures were a logical progression. Interim CEO Joseph White said the company had “taken aggressive and urgent steps to substantially improve [its] financial performance going forward.”
AmeriHealth Caritas Iowa also cut 400 employees. The private health insurer announced that it is ending its contract with the Iowa government to manage Medicaid patients. That change has led to hundreds of layoffs at AmeriHealth in 2017.
The health insurance layoffs in 2017 have amounted to thousands of jobs being lost across the country, with many companies struggling to contest with a shifting healthcare landscape. This is partly because the federal government has yet to settle on what exactly the future of its healthcare system will be.