Anyone hear anything yet about upcoming layoffs? Saw a loss of $1.9B loss in 2025 in the news. I know there is integration work going on in Medicare. What's everyone thinking?
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You have completely misread that article. It says that the subsidies are responsible for pushing the membership from 1.3M to nearly 4M in 2025. The subsidies expiration takes effect in this year 2026. The estimated 800k loss was not a report of what has occurred, it was the forecasted loss. Idk what the final number will be but you can bet that it's bare minimum in the 100s of thousands. The whole reason it went from 1.3M to almost 4M was due to the subsidies. Obviously now that they're gone it's going to crater.
@10w dream on.
@k2 TX ACA enrollment is higher this year than it was in 2025 according to a TX Tribune article, with over 4 million enrollees. Where did you hear about this purported 800k reduction?
@ck https://www.beckerspayer.com/financial/health-care-service-corp-posts-1-9b-loss-in-2025/
COVID has been over for 5 years, if utilization is up that's no longer the reason, time to come up with a new buzz word excuse.
@k0 headwinds is his buzz word. Please clap.
@k2 and they all want out of ACA and the cr-p known as Medicare Advantage- and Hcsc went all in and overpaid for that Cigna dumpster fire.
Just about every major health insurance company saw huge decreases in their net incomes. And they're all due to the same industry conditions, increased insurance usages post COVID. You call these things "talking points" and then call something Marxist lmao.
The loss of the ACA subsidies will compound and make that worse with the large decrease in IFM membership. I had heard something like an expected 800k loss to IFM membership in Texas alone.
@jv come on...do some math...HCSC is an outlier and saying headwinds...talking point that is ridiculous. In any case, won't be any changes to CEO...who also is Chairman of the Board...Marxist org.
The industry has been seeing headwinds for the last few years. Every company is seeing major losses
@ex better be. The loss is an outlier in the industry. Why there isn't a shake up on the C-Suite is the question.
I’d be cautious to assume any or all layoffs/closures would be performance related. CRE has a goal of reducing HCSC’s greenhouse gas emissions by 50% by 2030 and its longer-term goal is net-zero by 2050. Some roles will become redundant if offices are closed. So just my small two cents.
@c7 - So far, the numbers for the company's performance have been much better this year. We will see if that holds into the second half of the year though, but there are reasons to be optimistic.
@d2 because only one of the corporate API goals is related to being profitable, and there is no penalty for the size of the loss. Membership and revenue growth apparently do not exclude growth due to acquisitions.
If 2025 results were so bad then why were the bonus % so good? There were negatives but some good positives and thus I think why they dispersed bonuses much better than I thought.
It's not much better out there - I've been thru a couple of layoffs at public companies who will drop hundreds to thousands of employees because of a bad couple of quarters of revenue/sales/margin/stock performance. CEO cuts staff to the praise of investors. I've been thru that seemingly "greener on the other side" environment and was stressful. In fact I came to HCSC after a round of layoffs at a Tech firm and for the past few years tech firms have continued to layoff massive numbers. I get called to a meeting and after the 10-15 min meeting, I'm considered no longer an employee and my access to the network is completely cut off.
Interestingly though I see UnitedHealth gets good reviews as a top large employer - not sure what they're really like as an employer.
@ck and it is going to continue to get worse...
@ay The context is, the reporting is based on a recent regulatory filing, not just whispers you may have heard. Prior to the recent release of the 2025 annual report, where else was the $1.9B loss reported? Which town hall mentioned this loss?
Crains is reporting on last years performance but it isn't new. That Layoff we had last fall was likely the result. I have no idea how we're performing this year.
The loss has been reported for a few months now. It's not news, not sure what context the news you are referencing was framing it as some recent discovery.
The main loss was explained as being due to continued high usage.
The closing of offices is likely due to them trying to get ahead of another bad year with a large hit to the revenue from the ACA space due to the subsidies going away.
I wouldn't be surprised if there were more layoffs but I doubt anyone has heard anything at this point.
@OP Wow, that’s a big number. Reported by Becker’s. May explain at least partially the rapid emptying of offices, the change to WFH for at least a couple thousand employees, and the reduction of the real estate footprint. Does make you wonder what’s next.