Sorry peeps, but this is therapeutic… doing the work for the reporters so they don’t have to. 🤷♂️
Centene expects to spend $315 million to $365 million on employee separation costs while reportedly committing $500 million to as much as $1 billion to Cognizant for technology services involving TriZetto, claims, billing and customer service. Source: https://www.beckerspayer.com/workforce/centenes-buyouts-could-have-a-315m-price-tag-for-the-rest-of-the-year/
Here’s the important part… *Investors, CMS, and the state agencies sending billions of taxpayer dollars to Centene** should ask whether the work is actually disappearing or whether Centene is trading internal capability, institutional knowledge, and direct accountability for vendor dependency.
A point of comparison: Citi is moving in the opposite direction, reducing its reliance on technology contractors from approximately 50% to 20% to strengthen data governance, risk management, and operational control. Source: https://www.reuters.com/business/finance/citigroup-plans-slash-it-contractors-hire-staff-improve-controls-2025-03-13/
Why is Centene increasing vendor dependency at exactly the moment its execution risk is increasing? Why did Citi decide to do the opposite? Both are highly regulated industries. United Healthcare is also investing heavily internally and is quarters or years ahead of Centene in that regard.