UnitedHealth to lay off 138 in Delaware after losing Medicaid contract

Following a lost bid to manage Delaware's Medicaid program, UnitedHealth Group will lay off 138 employees, The News Journal reports.

UnitedHealth will end its managed care partnership with the Delaware Department of Health and Social Services Dec. 31. Highmark Blue Cross Blue Shield and AmeriHealth Caritas will take over management of the state's Medicaid program Jan. 1.

After the layoffs, UnitedHealth's Delaware workforce will decline to 122 employees. However, UnitedHealth spokesperson Jessica Buechler told The News Journal some employees affected by the layoffs may be rehired internally, or hired by competing payers.

Earlier this month, UnitedHealth announced it is cutting 381 jobs in Arizona after losing another contract to manage government benefits. 

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