UnitedHealthcare offers employee buyouts after tumultuous months
UnitedHealthcare confirmed on Wednesday that it is offering some employees voluntary buyouts.
UnitedHealthcare is the insurance subsidiary of UnitedHealth Group, and is the largest private health insurer in the United States.
It has been under a spotlight since the fatal shooting of CEO Brian Thompson in New York City on Dec. 4, 2024.
Thompson was succeeded by Tim Noel in January.
"This voluntary option is part of our ongoing efforts to ensure our team is best positioned to meet the evolving needs of the people and customers we are honored to serve," a company spokesperson told ABC News.
"We continue to grow our workforce and hire talent based on the needs of our business," their statement said.
In its January earnings call, UnitedHealth Group reported record revenues of $400.3 billion in 2024, while saying that it expects revenues of up to $455 billion in 2025.
It also noted that it is increasingly incorporating digital options into its business.
On the call, Andrew Witty, the CEO of UnitedHealth Group, defended some of the company's practices that have drawn criticism, including its marketing to senior citizens to enroll into its Medicare Advantage programs, prior authorizations and the use of artificial intelligence to process and deny claims.
"We're enhancing digital tools for consumers, harnessing data and using AI so they can find the best value care option and decide what is best for themselves and their families," Witty said. "People's health interactions should be as intuitive and seamless as every other aspect of their lives: banking, shopping, streaming. This past year, we saw an extraordinary increase in the use of these modern channels."
Other health insurance companies have also recently announced voluntary buyouts. Across the industry, health care companies are facing higher medical costs that cut into their profits.
Blue Cross Blue Shield of Michigan, for example, is offering buyouts to its nonunion employees as the health insurer tries to cut $285 million in administrative expenses this year as claims "skyrocket," according to a report in the Detroit Free Press.
The news of the UnitedHealthcare buyouts was first reported by CNBC.
