Said specifically by CEO yesterday during UBS call. Also indicated Centene is not trying to grow at this point (hence the title) and that they are bracing for up to 30+ percent drop in ACA membership. Medicaid will really feel it come 2017. And that’s not even considering what impact continued gains in AI will mean for employees. I hate to be negative here, but I’m not seeing much upside.
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@1hn If you don’t like capitalism, vote it out. But that’s the rules of the game here in America as of today. Get rich or die trying.
@1aw lol really? No sh-t, Sherlock, but they make plenty of money - record profits actually, so they can most def pay employees, they just don't want to take a pay cut themselves. It's cool if you want to stand behind unethical business practices that may indeed cost you your position in the company one day.
@1aw I know reading can be hard. The key word is “greedy”. Of course you have to make money. Question is, when is enough, enough.
@vy do you understand that if the company doesn’t make money, they can’t pay their employees?
@vy While you are correct about greed, if a company has a stock ticker, they are gonna be greedy. Capitalism and all.
@s2 Ok so it didn't make sense because they won't make money, and that's the whole point, isn't it? They care more about money than the members or employees. Period. THE END. That being said, they are not only losing members, but they will also cut staff. I don't care if it makes sense from a "business standpoint". This company is GREEDY and it comes at a cost to the people making them that $$.
@dq they are exiting business that isn’t profitable. They literally just did it with one of the Florida contracts. The state wouldn’t give us a rate that made financial sense, so we walked away from it.
@gg I disagree. While it’s definitely not surprising as a publicly traded company, it is very concerning. Especially for the employees that are inevitably going to be fired. After all, this is a site focused on layoffs, not Wall Street Bets.
No margin, no mission. It has always been margin first. Always.
This is neither shocking nor concerning.
@b4 Explain how that works? We know they aren't going to take a personal pay cut, and they certainly aren't going to retain employees by losing that cash flow. So they will RIF and raise premiums. Further proving that it's not about the employees and it damn sure isn't about the members.
Marketplace is definitely going to take a hit. They won’t want to give up Caid easily - and if they do it’ll be those without any sort of Care DSNP attached.
@b4 Probably not good for headcount. Less members + more AI = fewer employees. Possibly by a lot.
2017???????
The upside is that we are no longer operating under a “grow at all costs” mentality that has led to us bleeding resources on unprofitable business. Margins over membership means we are going to focus on profitability rather than trying to just get as many members as possible. That’s a good thing.