Centene said it would offer buyouts to a portion of its workforce as the health insurer seeks to curb costs amid rising medical expenses, funding cuts, and a shrinking membership base. The company did not disclose how many workers were invited to participate or how much it aims to trim from headcount. Centene remains the largest Medicaid provider and continues to focus on other federal programs, including Medicare and Affordable Care Act plans.
“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,” a company spokesperson said in a statement. “Today we announced a Voluntary Separation Program to support employees who may be considering a transition.”
Shares fell about 4% after Bloomberg first reported the news. The company indicated that layoffs could follow if it does not meet the voluntary-separation target. The buyout news comes after Centene reported a first-quarter membership decline of 6% year over year to 26.3 million, according to a regulatory filing.
The ACA business for Centene also shed roughly 2 million members in the first quarter versus the end of 2025, driven largely by the expiration of enhanced federal subsidies at the start of the year, executives said at a Barclays conference in March. Centene also warned that ACA membership could fall about 40% by the end of 2026. The company is bracing for more than $900 billion in Medicaid cuts over a decade, a challenge that continues to weigh on the broader private-insurance sector amid higher-than-expected medical costs in privately run Medicare plans.
