The layoffs affected around 1% of the insurer’s more than 9,000 employees, according to the Inquirer.
“Like all Medicaid managed care organizations, AmeriHealth Caritas has seen a decrease in our Medicaid membership and had to adjust our administrative costs to reflect this,” an AmeriHealth Caritas spokesperson said in a statement shared with Becker’s.
“Unfortunately, this includes the difficult decision to eliminate a small number of roles. This step was not taken lightly, and we are providing severance, benefits and job placement assistance to impacted associates.”
More than 23 million people have been disenrolled from Medicaid since April 2023, when states began redetermining beneficiaries eligibility for the program for the first time since pandemic continuous coverage requirements took effect in 2020.
AmeriHealth Caritas has around 5 million Medicaid managed care members in 13 states and Washington, D.C.
Other payers have pointed to a drop in Medicaid members as the cause for layoffs. In May, Texas Children’s Health Plan said it would lay off hundreds of employees after the health plan lost 30% of its membership during Medicaid redeterminations.
AmeriHealth Caritas is jointly owned by Independence Blue Cross and Blue Cross Blue Shield of Michigan.
