Copyright Boston.com
Harvard Pilgrim Health Care and Tufts Health Plan's parent company cites rising medical and pharmaceutical costs as the reason for the cuts. Point32Health announced it is laying off 254 employees on Monday, its second round of reductions this year. The non-profit company said in a statement that the layoffs are part of an effort to reduce administrative costs as it continues to experience unprecedented increases in medical care and pharmaceutical costs. Point32Health also cut 110 jobs in March. “This was an incredibly difficult decision because it will affect many of our talented and dedicated colleagues,” said Patrick Gilligan, president and CEO of Point32Health, in a statement. The company has about 4,000 employees, it reports on its website. The second largest health insurance company in the state, Harvard Pilgrim Health Care and Tufts Health Plan’s parent company, serves nearly 2 million members. “Our members are at the center of everything we do,” said Gilligan. “It is critical that we address costs within our control.” The Boston Globe reports that Point32 reported a $96 million operating loss on $4.9 billion in revenue, largely due to high medical and pharmaceutical spending on GLP1s, oncology drugs, and targeted autoimmune and cardiac treatments. The loss was less than Point32Health reported a year ago for the same period: a $155 million operating loss on $4.7 billion in revenue. The insurer isn’t the only one struggling. According to the Globe, the state’s largest insurer, Blue Cross Blue Shield of Massachusetts, announced earlier this month that it would offer severance packages to workers 55 and older who have been with the company for at least 10 years. The company says it is not planning any layoffs, but did not rule them out.
