UnitedHealth Group’s insurance unit, UnitedHealthcare, is offering voluntary buyouts to employees in its benefits operations division. Employees have until March 3 to accept the offer, according to a report from CNBC.
The company is aiming to meet a resignation quota through these buyouts. If the target is not reached, layoffs will follow, according to internal company communications. The benefits operations unit oversees customer service, claims processing, insurance benefits management, and enrolment, among other responsibilities.
Those who choose not to accept will either remain in their current roles or transition to similar positions.
As of 31 December, 2023, UnitedHealth employed over 440,000 people, based on its latest annual report. Like other providers of Medicare and Medicaid insurance plans, UnitedHealth has faced rising medical costs, which impacted profits in 2024. The company also faced setbacks last year due to a cyberattack on its technology division, Change Healthcare, and controversy surrounding denied insurance claims following the murder of Brian Thompson, CEO, UnitedHealthcare.
Employees were briefed on the buyout programme during a brief meeting on Monday. An internal memo stated that employees who opt for buyouts would see their termination dates no earlier than 1 May. However, some may be required to work beyond that date, though not past 13 November.
The offer is open to full-time and part-time US-based employees across four internal segments: corporate, consumer operations, core services, and provider services. UnitedHealth has yet to issue a public statement in response to media inquiries.
