Humana reducing Workforce in 2010 by 5% – Realigning Company Size with Membership
Posted Feb 17 2010 4:58pm
What this also means is streamlining algorithmic formulas to replace some functions that are done by humans, that is happening everywhere. If you work for a company making a profit, with technology and automation you could still face being laid off.
I’m certain like most of the other carriers have spoken, they are making more profits with less individuals. The last risk statement pretty much tells all, economic conditions, which maybe Wall Street could be turning a deaf ear to. Due to lower numbers of members too, a smaller workforce is needed. I heard last night another carrier in Rhode Island state that if they did not get their increase, that they had 2 months of reserve money left to pay claims, and I would have thought more, but again just relaying what I heard here. When the business intelligence algorithms are run the formulas say with the current membership in house it can be done with 2500 less people.
The rest of us have to “do” more with less, health insurance companies “make” more with less. BD
LOUISVILLE, Ky., Feb 17, 2010 (BUSINESS WIRE) -- Humana announced today that it intends to reduce its workforce on a net basis by approximately 1,400 positions, or five percent, over the course of 2010, balancing 2,500 position reductions with 1,100 additional jobs in areas of growth such as medical-cost containment capabilities, pharmacy management, and specialty products. The reduction will come primarily from attrition, process efficiencies, outsourcing, and position eliminations.
"Today's announcement reaffirms our commitment to positioning Humana for future growth," said Michael B. McCallister, Humana's president and chief executive officer. "This regrettable but necessary reduction in our workforce is a direct result of Humana's need to align the size of our company with that of our membership. We are committed to managing this aspect of our realignment with the utmost care and sensitivity."
Risk Factors (partial listing)
Rather, the reduction -- part of an ongoing administrative-cost-saving initiative at Humana -- is intended to help the company create a more efficient, agile infrastructure while also providing the resources required to invest in new growth opportunities.
Humana's business activities are subject to substantial government regulation. New laws or regulations, or changes in existing laws or regulations or their manner of application, could increase the company's cost of doing business and could materially affect its business, profitability and financial condition. In addition, as a government contractor, the company is exposed to additional risks that could adversely affect its business or its willingness to participate in government health care programs.
Changes in the prescription drug industry pricing benchmarks may adversely affect Humana's financial performance
Humana's ability to obtain funds from its subsidiaries is restricted.
The securities and credit markets may experience volatility and disruption, which may adversely affect the company's business.
Changes in economic conditions may adversely affect Humana's results of operations, financial position and cash flows.