Another major health care insurer is slated to lay off 1,300 employees in addition to approximately 1,150 employees who opted for early retirement and voluntary buyouts. Of course, the company was quick to speak of restructuring plans that would “position the company for long-term sustainable success.” While the company refused to comment on the business reason behind the layoffs, informed sources suggest that the reduction and realignment in force is linked to the exit of Humana from providing coverage under the Affordable Care Act also known as Obamacare.
Employees scheduled to be laid-off are noting that Humana’s CEO, Bruce Broussard was paid $19.7 million (including stock, options, and incentives) which was a 91% increase over his prior year’s compensation of $10.3 million. Which makes the restructuring and realignment appear to be a ploy to improve the company’s financials and attractiveness to other potential acquirers. One can only wonder what Broussard’s golden parachute actually contains should the company be acquired by another deep-pockets insurer. Or even a company unrelated to the insurance marketplace – think CVS Pharmacy’s desire to purchase Aetna.
The restructuring and realignment comes after a U.S. District Court Judge blocked Aetna’s proposed $34 BILLION merger with Humana; possibly intended to be a poison pill to discourage CVS Pharmacy’s desire to acquire Aetna in an unprecedented $70 BILLION deal.