Quintuple Whammy

Thinking about what got us to these layoffs

The Star Rating decrease and loss of $1 billion in the coming future (no impact this quarter)
Cost of insurance rising again as more people return to normal care; when COVID began lots of people stopped going to doctors
COVID vaccines drove foot traffic to store which likely helped some retail sales
Acquiring two large companies (Signify and Oak) and having to pay for them
PBM business, very profitable, is under as--ult (right or wrong TBD)

I can see the star rating being a one time event if we get our act together but the PBM business issues and cost of insurance rising will likely persist.

Point being: the layoffs, and previously hiring freeze, office shutdown, etc were caused by numerous factors (including the company getting bloated)

Comment! It's anonymous!

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Have you seen the number of layoffs since 2020? It impacts our business a lot. We slate fte's with membership. I was PM for Medicare advantage team. The Biden administration took away $500. Per Medicare beneficiary for 2023. We had 2.5 million Medicare members in 2022. That's a lot of $$$

They will be losing another client soon too in pbm

Yeah, and the John Legend concert was super expensive, so we have to consider that as well.

Don’t forget billions spent in two acquisitions.

Centene PBM business was lost

Which clients did PBM lose?

PBM business lost some major clients for FY24 and the Specialty pharmacy business is being hit with a number of generics.

Knew not new

True but it does not help those on the chopping block . Let’s face it if your Aetna side you saw the writing in the wall long ago. We haven’t had any new book of business in a while . We are very EE robust . I’ve been searching for roles on the CVS side . Aetna is great - they should have been preparing for this but they didn’t . They new they were very employee heavy .

No,

Caused by one factor and one factor alone. Poor executive leadership.

And 5,000 families will pay for that the next couple of weeks.

Thread regarding CVS layoffs

Quintuple Whammy

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