Humana to cut 1,400 jobs

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Humana will cut its work force by 5 percent, or 1,400 people, during 2010, the result of lower enrollment rates at the insurance company.
The company plans to reduce the impact of 2,500 job cuts by adding 1,100 jobs in medical-cost containment, pharmacy management and specialty products – the company’s growth areas.
Humana said the reductions will come from attrition, process efficiencies, outsourcing and through eliminating positions.
“This regrettable, but necessary, reduction in our work force is a direct result of Humana’s need to align the size of our company with that of our membership,” said Michael B. McCallister, Humana’s president and CEO.
People who are laid-off will have a 60-day transition period, during which time the human resource department will provide information about internal job opportunities and outplacement assistance. People who cannot get another job within the company will be offered a severance package that includes health benefits.
Humana has 10.3 million members in its health insurance departments and 7.2 million specialty-benefit members. The reduction is part of an ongoing administrative cost-saving initiative at the insurance company.

One Response to Humana to cut 1,400 jobs

  1. I used to write a lot of business when individuals were faced with the high expense of COBRA. Humana got a lot of that business because they treated my clients very well, and their rates were the most reasonable. While I was able to permanently cut an unemployed person’s health insurance rates by 60-70%, the COBRA reduction signed in March 2009 killed that line of business.

    End result, loss of jobs in the health insurance industry. Whether or not you believe government should meddle in the affairs of the medical industry, that COBRA discount plan has hurt a lot of individuals in the long run. Many who were insurable have attempted to get individual plans (much less expensive) after fearing the COBRA discount would expire soon, now find themselves uninsurable because they had some sort of medical condition that was discovered during the TEMPORARY discount period. They could have had a permanent plan, now when the COBRA discount expires, their stuck.

    Christopher Colvin
    http://cobra.springshealthplans.com

    Christopher Colvin
    February 18, 2010 at 1:29 pm