The insurance division of Sentara Health is departing from some Medicare Advantage programs and, in a related move, the system is laying off about 220 employees.
Sentara Health Plans said its removal of some Medicare Advantage plans will affect 28,961 health insurance members statewide and 18,097 in the greater Hampton Roads region.
In 2026, the company said it will no longer offer these plans: non-dual Medicare Advantage, Medicare Advantage prescription drug health maintenance organization, and chronic condition special needs plans in Virginia, North Carolina and Florida.
Affected members were sent letters this week to inform them of the change, including guidance for next steps, the company said. Coverage for the plans ends Dec. 31, and members will be required to switch to another insurer during the annual enrollment period, starting Oct. 15.
The plans are no longer considered financially sustainable in the current environment, Sentara spokesperson Dale Gauding said.
“Industry-wide headwinds and market dynamics, including reimbursement trends and regulatory changes, are leading many insurers to reassess their participation in Medicare Advantage,” he said.
The change does not impact Sentara’s dual-eligible special needs plan nor employer, individual and family plans and Medicaid lines of business, Gauding said. It also does not affect the insurance plans accepted by Sentara Health hospitals and medical professionals.
“The decision was not made lightly and follows an extensive and thoughtful review,” Gauding said.
Sentara Health employees were notified of the workforce reduction last week, said Colin Drozdowski, president of Sentara Health Plans and an executive vice president of Sentara Health. The majority of the roughly 220 eliminated positions are within the insurance division, with the remaining being corporate shared services positions that primarily support health plan operations, Drozdowski said.
“While approximately 400 positions were identified, by not filling 180 open/vacant positions we were able to limit the impact,” he said in an email.
About two-thirds of the roles are in Virginia, with one-third in Florida and the remainder remote positions across several other states. The positions represent less than 1% of Sentara Health’s total employee workforce of 34,000.
The reductions will align Sentara Health Plans’ staffing with membership levels and operational needs, Drozdowski said. Affected employees will receive at least 60 days’ notice, and Sentara will support them with career transition services, severance benefits, and opportunities to apply for other roles within the organization.
Through all the changes, Gauding and Drozdowski said Sentara remains committed to delivering high-quality care to its members, patients and communities.