Health insurer Centene, looking to cut costs after losing more than two million Obamacare health plan members, Monday confirmed plans to offer companywide buyouts to most employees.
In April, Centene reported first quarter net income of more than $1.5 billion despite a drop of 2 million enrollees in individual coverage under the Affordable Care Act also known as Obamacare. Centene is one of the nation’s largest providers of Obamacare and the enrollment disclosure as part of the company’s first quarter earnings report is a snapshot into what health insurers and Americans who buy their coverage are facing after Congress and the Trump administration failed to renew enhanced subsidies.
Centene, which has 61,000 employees, didn’t disclose whether there was a specific number of workers that the company expected to take a buyout.
“Centene is positioning the company to lead the future of healthcare – working to deliver a simpler and better experience for our members and partners while meeting the realities of today’s healthcare environment,” the company said in a statement. “Today we announced a Voluntary Separation Program to support employees who may be considering a transition.”
Like other health insurers, Centene has been working to reduce administrative costs and other expenses. Centene’s first quarter earnings report indicated high healthcare costs that have been a drag in past earnings may be stabilizing somewhat as the company’s health benefits ratio, which is the percentage of premium spent on medical costs was down slightly to 87.3% for the first quarter of 2026 compared to 87.5% in the first quarter of 2025.
But its more difficult for health insurers to control expenses if the pool of patients paying premiums is dwindling. Centene said in April that its enrollment in “marketplace” plans it sells under the Ambetter brand dropped to 3.58 million at the end of the first quarter compared to 5.54 million at the end of last year and 5.62 million in the year ago quarter.
The big dip in Centene’s enrollment is what Democrats in Congress and health insurance industry analysts said would happen after Republicans in Congress and the Donald Trump White House wouldn’t agree to extend enhanced tax credits for buyers of Obamacare. A KFF analysis last fall said middle income Americans “as well as those with low incomes” will see “major out-of-pocket premium increases” if tax credits aren’t extended. And they are with customers reporting a doubling and even tripling of premiums for this year.
The subsidies, or tax credits, made health insurance premiums more affordable for individuals and were enhanced by the Biden administration and the Democratic-controlled Congress, which passed the Inflation Reduction Act of 2022, allowing more Americans to buy coverage. The enhanced subsidies helped enrollment in the ACA’s individual coverage, also known as Obamacare, eclipse a record 24 million Americans and help its popularity hit all-time highs.
