AM I NEXT? NO LOVE AT CENTENE CORPORATION

Clayton, Missouri-based Centene Corporation, a managed care company serving as an intermediary for government-sponsored and privately insured healthcare programs, has announced a restructuring and cost-cutting initiative.

The reduction in force will impact 2,0000 employees companywide.

A company spokesperson noted, “Centene is committed to improving the health and health care of the members we serve. We are investing to deliver value for our customers now and into the future, both by leveraging our size and scale and by rightsizing our cost structure. We routinely assess our workforce to ensure we have the talent and expertise necessary to support our members and the evolving needs of our business. Our decision was not made lightly and impacts approximately 2,000 employees, just over 3% of our workforce. Centene will support impacted employees with severance packages and outplacement services, consistent with our standard approach.”

The company appears to be impacted by changes in Medicaid regulations in the company's service area which will reduce eligibility requirements for thousands of now-covered patients.

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. We see good people being laid off through no fault of their own. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?

AM I NEXT? IS THE HANDWRITING ON THE WALL AT CENTENE CORPORATION?

St. Louis, Missouri-based Centene Corporation, a multi-line managed care enterprise that serves as a major intermediary for both government-sponsored and privately insured health care programs, has announced major legal settlements involving irregularities in the company's disclosure and billing practices. The settlements may directly impact the company's finances and possibly lead to another reduction in force.

According to a statement filed with the Securities and Exchange Commission...

"On June 14, 2021, Centene Corporation announced that it has reached no-fault agreements with the Attorneys General of Ohio and Mississippi to resolve claims made by the states related to services provided by Envolve Pharmacy Solutions, Inc. (“Envolve”), the Company’s pharmacy benefits manager subsidiary.

Under the terms of these agreements, Centene will pay $88 million to Ohio and $55 million to Mississippi. The practices described in the settlement focused on the structure and processes of Envolve primarily during 2017 and 2018. In the settlements, the Company denies any liability for these practices.

As a result of the settlement, the Ohio Attorney General’s litigation against the Company will be dismissed.

Additionally, the Company announced it is in discussions with a plaintiff’s group led by the law firms of Liston & Deas and Cohen & Milstein in an effort to bring final resolution to these concerns in other affected states. Consistent with those discussions, Centene has recorded a reserve estimate of $1.1 billion related to this issue, exclusive of the above settlements."

In February 2021, the company reported a fourth-quarter loss of $12 million and noted plans to eliminate 3,000 workers and 1,500 open positions to resolve the overlap in functions and positions with Phoenix, Arizona-based Magellan Health, acquired in January 2021 for $2.2 billion.

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?