UnitedHealth Pushes Buyouts To Cut Costs, Avoid Layoffs

UnitedHealth's insurance division is offering employees in its benefits operations unit the option to accept buyouts if they quit by March 3.

UnitedHealth’s insurance unit is offering employees in its benefits operations unit the option to accept buyouts if they quit by March 3, CNBC reported on Wednesday.

Those who do not accept the offer will either continue in their current role or a comparable position, the report added, citing two people familiar with the matter.

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If the unit, UnitedHealthcare, does not meet a resignation quota through buyouts, it will lay employees off, the people said, citing an internal resource site.

The benefits operations unit oversees multiple subdivisions that help manage customer service, claims, enrollment, customers’ insurance benefits and more, according to the report.

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UnitedHealth had more than 440,000 employees, as of December 31, 2023, according to its latest annual filing.

The company and its peers who provide its government-backed Medicare and Medicaid insurance plans have seen an increase in medical costs over the last few quarters, which put pressure on their profits in 2024.

The company also encountered other challenges last year, including a cyberattack on its tech division Change Healthcare and a backlash over denial of insurance claims after the murder of UnitedHealthcare CEO Brian Thompson.

UnitedHealth did not immediately respond to a Reuters request for comment.

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Workers were informed about the buyouts during a meeting that lasted around 10 minutes on Monday, the report said.

The company expects employees’ termination date to be no sooner than May 1, CNBC reported citing an internal memo sent on Monday.

The memo said some employees who accept buyouts may need to work beyond that date, but the company does not expect to require them to work past November 13, according to the report.

Employees eligible for the buyouts include full-time or part-time U.S. workers assigned to four internal segments under benefits operations, including corporate, consumer operations, core services and provider services, according to the report.