This is an exact part of healthcare reform that is posing questions, are there enough competitors in health insurance without some having an monopoly of sorts in certain areas. Where do individuals go? Also with this acquisition of HealthNet in the northeast, what will happen down the road with the 1000 employees. We all somewhat know the answer if you read about mergers and acquisitions today, so it might be just a matter of time until some may be able to relocate, and technology and just general combining of business technologies may eliminate other jobs as well. We watched this occurrence in California a few years ago when PacifiCare was purchased by United.
From a prior post:
“UnitedHealthCare is making more money from their technology these days than they are with selling premiums and then again they mine those exact policies for risk management which ends up in either denying claims in some instances or someone perhaps not qualifying, etc. Of all the health insurance companies, they seem to be the only one blowing off the doors with profits, something to think about, and again, it’s all in the algorithms they run, business intelligence provided by their subsidiary Ingenix. Wendell Potter gets it.”
The sale to United was announced a few days after HeatlhNet lost the Tri-Care contract in that area to Aetna with United gaining the Tri-Care agreement in the southeast. Complaints of unfairness have been filed on the award of the Tri-Care business as well. Profits last year for United were over 3 billion.
UnitedHealth Receives $21.8B military health care contract With DOD Tri-Care – Aetna Gains Northern Region
In a business journal it is reported that United is going to add on to their headquarters in Minnetonka and in 2008 they completed a 10-story, 350,000-square-foot office building. The next building is supposed to be phase 2 of what was projected a few years ago, but the city needs to upgrade a city interchange before that takes place, so maybe there’s relocation options for the employees down the road? BD
United Healthcare's pending acquisition of the licenses of Shelton-based HealthNet of the Northeast has created some uncertainty about the future of approximately 1,000 jobs in the state and caught the attention of Connecticut's attorney general.
"We're going to be looking into whether and how United Health is dealing with, retaining or discharging, employees of Health Net," Attorney General Richard Blumenthal said Wednesday. Blumenthal said he could not comment on the matter further.
United Healthcare announced in July plans to buy Health Net of the Northeast's licenses and the option of renewing enrollments in a deal valued at more than $500 million.
For employees: The sale to UnitedHealthcare did not include a transfer of employees. However, since the transition from HealthNet plans will take time, employees are safe for now.