Medica to Cut Another 250 Jobs
After exiting the state’s managed-care services contract and losing $187.5 million from its Medicaid Families and Children business last year, Medica told the Star Tribune on Thursday that it would lay off 110 employees and leave 140 openings unfilled.
Minnetonka-based Medica, one of the largest health insurers in the state, said this would be its “second and final round of employee layoffs.” The company also eliminated 100 jobs in January, meaning Medica’s headcount will have dropped by 350 this year, or about 20 percent.
Medica said the most recent round of layoffs would take effect at the end of the month.
The nonprofit, which provides health insurance products to 1.7 million members, hit the state with a lawsuit last month regarding its “refusal” to negotiate “actuarially sound” rates for the managed-care services contract. Minneapolis-based UCare, instead, picked up the contract.
As both parties meet for a hearing in June, Medica said it aims to reach a compromise with the state — one that will allow it to once again join the competitive bidding process for the 2018 contract.