Thread regarding Cigna layoffs

A dying industry

(This was a reply I posted in another thread, but it should probably be its own topic.)

Ever wonder why Cigna, UHG, Aetna, etc. are trying to branch out into different areas?
They’re hedging their bets.

AI efficiency is smallest piece in our layoff equation, but it is giving leadership hope that cuts will help bring profits.

Cigna, as well as every other publicly traded company, is outsourcing (offshoring) tech, admin, call centers, etc. in huge numbers. The remaining US employees are expected to absorb their newly-acquired extra job functions with the use of AI (Copilot in our case). AI is expected to increase productivity of remaining US employees by at least 2X.

As per usual, teams in India will make lots of noise and eat up company resources while providing very little new product and creating extra work for US-based workers.

Ultimately, Shareholders will still be pi---d because Cigna stock prices will continue to slide. The real reason for this slide isn’t is that employee costs are growing. Rather, it’s because health insurance premiums can no longer feasibly grow at the same rate as healthcare cost and utilization.

What we’re witnessing firsthand is an industry in turmoil. The once limitless dollars of the US commercial healthcare membership are drying up at an unbelievable rate. The Boomer demographic is coming home to roost and is destroying the market. GenX and Millennial employee dollars can’t stand the strain of Boomer retirees and job diehards.

You may ask “if Boomers retiring, how does this negatively impact commercial plans?”
The answer is that the US commercial healthcare member/client pays the lion’s share of the US (and the world) healthcare bill.
Providers have prices capped by CMS (Medicare/Medicaid) and many uninsured individuals just don’t pay. So that leaves the good ol’ American employee based plans to pick up the slack. But this golden egg-laying goose has hit menopause. It wasn’t expected so soon or so dramatically.

Employers are tapped out, so premiums can’t increase appreciably.
Individuals are forced to buy super high deductible plans while avoiding wellness visits and out of pocket costs.
Health insurer shareholders will continue to demand cuts until profits are acceptable.
This last thing is impossible.

This industry is no longer viable.
If you’re under 45 years old, be planning your transition. If you’re 55+, pray you can hang on and save.

For those of you who think single payer provided by Big Daddy Government is the answer. Well, just look around at the challenges those socialist utopias are facing and remember that SOMEONE IS PAYING THE BILL and someone else is trying to work a profit. It’s the same p-o in a different bag.


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| 65 views | | 22 replies (last March 19) | Reply
Post ID: @OP+1kkh749zh

22 replies (most recent on top)

@131

You’re right.
It’s much better to force community-paid healthcare onto people who really don’t want it and likely won’t make any suggested lifestyle changes anyway.

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Post ID: @1ab+1kkh749zh

@w2 You sound like a sociopath. Sure, let’s just let people who get sick die. Because, you know, they’re just “dead wood.”

You definitely have senior management potential. Let’s hope no one in your family gets cancer.

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Post ID: @131+1kkh749zh

@vy

Sometimes you have to let the dead wood fall.
Trying to save everyone is a losing proposition in every way.

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Post ID: @w2+1kkh749zh

@vv Nanny state? Who gets the most handouts from the government? Cigna is on that list. People on food stamps don’t come close to corporate welfare price tag.

Also unhealthy people raise ALL our costs. They will skip checkups then get really sick and end up in the hospital and then they won’t pay their bill. So the provider recoups cost by raising prices for everyone. Learn socioeconomics!!!

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Post ID: @vy+1kkh749zh

@t3

Cost effective to whom?
The insurer?

That’s exactly what free market usurps, genius.
There is no “insurer/payer” it’s all up to the individual to decide cost effectiveness vs. future cost mitigation.

You adherents to the Nanny State can’t understand the simplest of socioeconomic concepts.

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Post ID: @vv+1kkh749zh

@m0 Sorry but you sound like a very low IQ individual. It is MUCH more cost effective to make sure as many people as possible get preventive care to reduce much higher costs in the future.

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Post ID: @t3+1kkh749zh

@jt "When people have to pay for something they don’t enjoy, they often will just skip it." Well then this is where Mr. Darwin steps in, isn't it.

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Post ID: @mb+1kkh749zh

@fg Without market distortions, the price of routine checkups is allowed to find its actual, much lower price. Then it's all on you to decide if you want to shell out the $75 bucks or not. If you're not willing to get a check up once a year, or get an oil change for a car, then that's on you.

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Post ID: @ma+1kkh749zh

@jt

So you’re saying that we need freebies in order for people - who otherwise don’t care - to keep up with their health?

That’s the d-mbest sh-t I’ve ever heard.
Look at all the grossly obese and unhealthy people on medicaid.😆

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Post ID: @m0+1kkh749zh

@g5 You’re missing the point and being very naïve about human nature. When people have to pay for something they don’t enjoy, they often will just skip it. If people now have to pay for routine care many just won’t do it, which will create much worse health problems and costs in the long run.

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Post ID: @jt+1kkh749zh

@fg

The patient pays out of pocket up front for standard things.

The provider can’t charge more for standard things than people will pay.

Providers save on ridiculous claim admin costs and the patient gets to pay fair market value.

Everyone wins.

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Post ID: @g5+1kkh749zh

@fh
Preach comrade.

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Post ID: @fv+1kkh749zh

@eh After 20 years working for several large health insurers I've come to the conclusion that a single payer system is the only viable option. The for-profit, employer-based private system has proven to be a complete failure. There needs to be a single entity negotiating with providers and dr-g companies, one EHR to streamline, simplify and aggregate health data and universal coverage for all Americans.

The fact that 27 million Americans don't have health insurance is immoral and unacceptable. Especially while people like DC make $23 million a year. Single payer won't be perfect, but it would fix the biggest problems with this completely broken system. I'm actively looking to get out of this immoral industry and have asked for a package. Good luck to those who want to stay.

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Post ID: @fh+1kkh749zh

@e9 Who covers routine checkups and well-care then? If that isn't covered people won't get it and health issues and costs will explode in the future.

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Post ID: @fg+1kkh749zh

@eh
If that were the case, all of us admin workers would be cut.

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Post ID: @f1+1kkh749zh

Health insurance needs to be non profit.

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Post ID: @eh+1kkh749zh

@OP Both Private Health Insurance and Single Payer as they are currently configured, here in the US and the latter in other countries represent market distortions that either raise costs, or limit supply. Insurance should cover medical emergencies and costly procedures, not routine checkups.

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Post ID: @e9+1kkh749zh

@aa Yarvin/Thiel/Musk/Vances DID play both sides. Both were originally one side then grifted to another.

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Post ID: @ae+1kkh749zh

@a8

Please leave politics out.
Both sides are guilty.

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Post ID: @aa+1kkh749zh

@a5 It's Curtis Yarvin/Peter Thiel/JD Vance/Usha Vance's dream come true. The caste system that was also brought to America with California being the first victim.

We help the wealthiest Americans and the wealthiest Indians/foreign class now. The American middle class is sc--wed.

A lot of technofascists like Musk and Thiel believe in this stuff.

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Post ID: @a8+1kkh749zh

@a5

It is 100% a self defeating cycle.

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Post ID: @a6+1kkh749zh

It's pretty funny. All the outsourcing == a decent bit of american wealth being transferred to foreign nations while concentrating the rest in the hands of a small % of americans, but then your product/company relies on the large remaining % of americans to be profitable.

But it won't be a problem until it's more commonplace, since someone else (other companies that don't offshore) can "foot the bill" so to speak.

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Post ID: @a5+1kkh749zh

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