UnitedHealthcare in Phoenix, part of the insurance branch of UnitedHealth Group, will lay off 381 employees, a company spokesperson told ABC 15.
The job cuts concern positions related to UnitedHealthcare's military and veterans Tricare contract. UnitedHealthcare managed benefits for Tricare's West Region, including Arizona, since 2012; however, the payer lost its bid to continue the contract in July 2016. UnitedHealthcare's contract concludes Dec. 31, after which Health Net, a subsidiary of Centene, will take over.
Affected employees were notified of the layoffs before the announcement, UnitedHealthcare said. The insurer is helping affected employees find open positions within the company.