Health insurance giant Humana Inc. is laying off 260 Tampa Bay employees and another 68 around Florida less than three weeks after a federal judge blocked the company’s $37 billion merger with Aetna.
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The cuts, which the company insisted are unrelated to the thwarted merger, involve employees of Humana At Home, a program designed to keep chronically ill and disabled patients out of the hospital and nursing homes through visits or phone calls by health professionals. The program has more than a million patients nationwide.
"From talking with the leaders of this team, this decision was not easy for them and was the result of what they’ve learned in the eight years since we started Humana At Home," Humana spokesman Mitch Lubitz said Friday in a written statement. "The changes within Humana At Home will help Humana continue to deliver high quality service to these members."
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Lubitz said 500 employees were being laid off nationally, including 88 positions in Ohio, according to a report by the Cincinnati Enquirer.
Lubitz said employees are getting 60 days’ notice, severance benefits and job placement assistance. Some of the employees, he noted, may be eligible for other jobs at Humana.
He said the company’s Florida workforce remains at more than 11,000 employees, up from 6,000 in early 2013. About 4,000 of those are in Tampa Bay.
"It is important to note that helping our members living with chronic conditions maintain their highest possible quality of life remains the goal of Humana At Home and a critical element of Humana’s strategy going forward," Lubitz said.
A federal judge last month rejected health insurer Aetna’s bid to buy Humana on grounds that the deal would hurt competition in hundreds of Medicare Advantage markets, ultimately affecting the price consumers pay for coverage.
Aetna, the nation’s third-largest health insurer, had announced in 2015 its plan to spend around $34 billion on Humana and become one of the top providers in the fast-growing Medicare Advantage market. Medicare Advantage plans are privately run versions of the government’s Medicare program for people who are over age 65 or disabled.
The big insurers had argued that by getting bigger they will be able to negotiate better prices with pharmaceutical companies, hospitals and doctor groups that also are growing. They also expect to cut expenses and add more customers, which helps them better spread out the cost of investing in technology to manage and improve care.
Information from the Associated Press was used in this report. Contact William R. Levesque at levesque@tampabay.com. Follow @Times_Levesque.
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