A common view exterior the United Healthcare company headquarters on December 4, 2024 in Minnetonka, Minnesota.
Stephen Maturen | Getty Photos
UnitedHealthcare is providing sure workers in its advantages operations unit the choice to simply accept buyouts in the event that they stop by March 3, following a tumultuous yr for the insurance coverage big, CNBC has discovered.
Those that do not settle for the provide will proceed in both their present position or a comparable place, two individuals acquainted with the matter instructed CNBC. If the corporate doesn’t meet a resignation quota by means of buyouts, it’s going to lay off workers, the individuals stated, citing an inside useful resource website.
The corporate declined to share what number of workers acquired 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, clients’ insurance coverage advantages and extra, one particular person stated.
UnitedHealthcare, the insurance coverage arm of UnitedHealth Group, is the most important personal well being insurer within the U.S. UnitedHealth Group had greater than 440,000 workers as of December 2023, however it doesn’t disclose how many individuals work in its advantages section or general insurance coverage enterprise.
UnitedHealth Group is the largest health-care conglomerate within the U.S. primarily based on income and its roughly $460 billion market cap, however it has tried to chop prices as medical bills improve for Medicare Benefit beneficiaries and it offers with the fallout from the expensive 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.
Staff eligible for the buyouts embody full-time or part-time U.S. employees assigned to 4 inside segments underneath advantages operations, together with company, client operations, core companies and supplier companies, based on an inside memo despatched Monday and considered by CNBC.
“This voluntary choice is a part of our ongoing efforts to make sure our group is greatest positioned to fulfill the evolving wants of the individuals and clients we’re honored to serve,” a UnitedHealth spokesperson instructed CNBC in an announcement. “We proceed to develop our workforce with greater than 3,200 positions at the moment out there on UnitedHealth Group’s careers website.”
The corporate expects workers’ termination date to be no ahead of Might 1, based on the memo. The memo stated some workers who settle for buyouts could must work past that date, however the firm doesn’t anticipate to require them to work previous Nov. 13.
Their severance packages will rely upon 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 workers included in any potential future layoffs is probably not “as favorable” as these provided to employees underneath the buyout program, based on the memo.
Staff who acquired the buyout affords are in shock, stated the individuals acquainted with 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% yr over yr.
UnitedHealth executives stated in the course of 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 form of scratching the floor of the chance.”
Staff have been knowledgeable in regards to the buyouts Monday throughout a gathering that lasted round 10 minutes and have been instructed they are going to have the chance to ask questions in data classes within the coming days, the individuals stated.
The buyouts comply with the taking pictures 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 employees in its Optum well being companies division final yr.
Shares of the corporate have been up practically 1% on Wednesday.
