Centene Offers Employee Buyouts After Significant Membership Losses
On June 16, Centene confirmed it is offering voluntary buyouts to its 61,000 employees in response to declining health plan membership. A company spokesperson did not disclose the number of employees receiving the offer or the target for acceptances, but stated the program was not a "complete overhaul."
As of March, Centene's total at-risk membership had fallen to 26.3 million from 27.9 million the previous year. The decrease was driven by a 4% year-over-year drop in Medicaid members and a 54% drop in Affordable Care Act (ACA) exchange members.
According to Healthcare Dive, the membership losses are linked to the expiration of enhanced ACA subsidies and states resuming Medicaid eligibility checks. Centene also anticipates further Medicaid contraction from future funding cuts and new work requirements.
In a message to employees reported by Bloomberg, CEO Sarah London stated, "When our membership shifts, we need to shift our organization accordingly." The company has also communicated to investors a focus on improving margins amid the changing policy landscape.