L.A. Care Health Plan is laying off 225 employees by March 13.
The insurer told Becker’s the move affects 3% of its workforce and was driven by federal and state Medi-Cal budget reductions, which subsequently led to organizational restructuring. Impacted employees were notified on Jan. 9.
“To continue delivering high-quality service and maintaining uninterrupted coverage for our members, we have made the difficult decision to reduce our workforce,” a spokesperson for the insurer said. “This restructuring is intended to strengthen critical capabilities and position us for the future. It includes new roles designed to support the execution of our strategic vision. We recognize the personal impact of these decisions, and we are committed to treating every impacted employee with dignity and respect, and to providing meaningful transition support and resources to those affected.”
The layoffs are not expected to impact member access to care, provider networks, or essential services. L.A. Care is the nation’s largest publicly operated health plan, serving more than 2.6 million low-income Los Angeles County residents across four product lines.
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