A common view exterior the United Healthcare company headquarters on December 4, 2024 in Minnetonka, Minnesota.
Stephen Maturen | Getty Photos
UnitedHealthcare is providing sure staff in its advantages operations unit the choice to just accept buyouts in the event that they stop by March 3, following a tumultuous 12 months for the insurance coverage big, CNBC has realized.
Those that do not settle for the supply will proceed in both their present position or a comparable place, two individuals accustomed to the matter informed CNBC. If the corporate doesn’t meet a resignation quota via buyouts, it should lay off staff, the individuals stated, citing an inner useful resource web site.
The corporate declined to share what number of staff obtained buyout affords underneath the so-called Voluntary Resignation Separation Program. The advantages operations unit oversees a number of subdivisions that assist handle customer support, claims, enrollment, prospects’ insurance coverage advantages and extra, one particular person stated.
UnitedHealthcare, the insurance coverage arm of UnitedHealth Group, is the most important non-public well being insurer within the U.S. UnitedHealth Group had greater than 440,000 staff as of December 2023, nevertheless it doesn’t disclose how many individuals work in its advantages section or total insurance coverage enterprise.
UnitedHealth Group is the most important health-care conglomerate within the U.S. based mostly on income and its roughly $460 billion market cap, nevertheless it has tried to chop prices as medical bills enhance for Medicare Benefit beneficiaries and it offers with the fallout from the pricey cyberattack towards its subsidiary Change Healthcare. It has additionally confronted renewed anger over excessive health-care prices within the U.S., following the killing of its insurance coverage unit CEO Brian Thompson in December.
Workers eligible for the buyouts embrace full-time or part-time U.S. staff assigned to 4 inner segments underneath advantages operations, together with company, shopper operations, core companies and supplier companies, based on an inner memo despatched Monday and seen by CNBC.
“This voluntary possibility is a part of our ongoing efforts to make sure our crew is finest positioned to fulfill the evolving wants of the individuals and prospects we’re honored to serve,” a UnitedHealth spokesperson informed CNBC in a press release. “We proceed to develop our workforce with greater than 3,200 positions at present accessible on UnitedHealth Group’s careers web site.”
The corporate expects staff’ termination date to be no prior to Could 1, based on the memo. The memo stated some staff who settle for buyouts could must work past that date, however the firm doesn’t count on to require them to work previous Nov. 13.
Their severance packages will rely on the variety of years they’ve spent on the firm and their wage grade, and can kick in on their termination date, the memo stated. The advantages supplied to staff included in any potential future layoffs will not be “as favorable” as these provided to staff underneath the buyout program, based on the memo.
Employees who obtained the buyout affords are in shock, stated the individuals accustomed to the matter, particularly after UnitedHealth Group reported its highest-ever annual income in 2024. The corporate stated in its January earnings launch that it generated $400.3 billion in income in 2024, up 8% 12 months over 12 months.
UnitedHealth executives stated throughout the firm’s fourth-quarter name in January that “digital adoption” helped the corporate decrease prices. CEO Andrew Witty referred to as it a “modernization agenda” which incorporates however is not restricted to synthetic intelligence.
He added that UnitedHealth is “simply sort of scratching the floor of the chance.”
Employees had been knowledgeable concerning the buyouts Monday throughout a gathering that lasted round 10 minutes and had been informed they may have the chance to ask questions in data classes within the coming days, the individuals stated.
The buyouts comply with the capturing of Thompson, which unleashed a torrent of pent-up anger and resentment towards the insurance coverage trade and renewed requires reform.
That got here solely months after Change Healthcare, which processes medical claims, was hit by a cyberattack in February 2024 that compromised the protected well being data of round 190 million individuals. UnitedHealth Group has paid out greater than $3 billion to suppliers affected by the cyberattack.
UnitedHealth Group additionally laid off staff in its Optum well being companies division final 12 months.
Shares of the corporate had been up almost 1% on Wednesday.
