UnitedHealth Group, the Eden Prairie-based healthcare giant, has started offering buyouts to some employees in an effort to address its growing workforce. The company is calling this “voluntary resignation separation program” a temporary measure to help it better position itself for future challenges.
According to reports, the move comes as the company continues to expand its workforce, despite facing financial pressures due to rising medical costs and concerns over the health insurance industry’s need for reform. UnitedHealth Group operates one of the largest companies in the US and Minnesota, with approximately 400,000 employees worldwide.
While details on the number of buyouts being offered remain unclear, current and former employees have come forward to report that those who take a voluntary separation will receive additional severance pay based on their tenure at the company. The move is seen as a potential precursor to layoffs, although UnitedHealth Group has maintained that it does not intend to cut jobs at this time.
The health insurance giant faces several headwinds, including rising medical costs and growing public pressure over denials of coverage. In recent months, there have been high-profile incidents involving UnitedHealthcare, the company’s largest health insurer, including a lawsuit alleging faulty AI was used to deny coverage.
Source: https://www.startribune.com/unitedhealth-group-begins-offering-employee-buyouts-could-resort-to-layoffs/601225635