Thread regarding Centene Corp. layoffs

Is Centene Cutting Costs or Trading Employees for Vendor Dependency?

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.


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| 89 views | | 17 replies (last 7 days ago) | Reply
Post ID: @OP+1m0fsvn3a

17 replies (most recent on top)

@sz As they say, “ A throat to choke.”

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Post ID: @t7+1m0fsvn3a

Vendors = Future safety net. Rub my back and I’ll rub yours.

Vendors also help hide that you are incompetent and give you a scape goat.

It’s a win win for lackluster leadership.

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Post ID: @sz+1m0fsvn3a

@JW And they bring in the same connected cadre of “transformation” people who never really transformed much of anything. Shuffle the org chart, cut the people who know how the place actually works, hand the keys to Cognizant and Accenture, declare victory, and move on before anyone figures out what got worse. I wish we knew what went on behind the curtain…

Taxpayer dollars funding the severance on one end and outsourced labor on the other. Quite the operating model.

Meanwhile UHC, Humana, Elevance, CVS/Aetna and Cigna/Evernorth are building operating models around speed, automation, data and AI, with the connected systems, internal projects, etc. They are going to eat Centene’s lunch AND steal their lunch money while Centene figures out who owns what now.

Brilliant strategy. 😂

(Can ya tell I’m passionate about this?)
(The bitterness is kinda fading though.)
(Sorta.)

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Post ID: @kq+1m0fsvn3a

It's MFN's fault for hiring this dimwit in the first place. Their margin su-ks, and the tools they had to control margin went through constant reorg's and a bunch of new management without a clue. Just when you think they can't a bigger id--t, they go out and find that person and bring them in while letting go of the people that had a grasp on things.

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Post ID: @jw+1m0fsvn3a

This company is running 10-15 years behind on everything. Offshore/onshore, WFH, cloud, platform, strategy, operating model, etc. They see shiny toy or buzz word and that is the thing. They need hand holding why they are over run by vendors and their recommendations that benefit them

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Post ID: @en+1m0fsvn3a

It’s going managed services since they can’t get anything operating on their own or settle with decisions. We have operations trying to be tech and tech trying to understand the problems operations have because Ops cant define it. No clear roles responsibility- accountability-duplicate roles driving different directions.

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Post ID: @em+1m0fsvn3a

It’s going managed services they will weed everyone out and only have people to paper push the renewals/ extensions. The only vendor reductions that will happen are just to go to favorite vendors(cheapest). C-Suite and Leadership continue to run behind market trends by 10-15 years. Work from home, Cloud, staffing alignment; translation services, automation; platform alignment, operational efficiency’s . Call center leadership are a joke they want to drive everything technical bend the numbers for the reports but still fail to lead their area of control. They have vendors talking to them but fail to realize impact. Procurement is the weakest I have seen in a company who allow operations to randomly select vendors duplicating technology. Vendor management not forcing the hand of vendor behavior who are out of line. Call center literally burns money without blinking an eye.This is what happens when you rotate Leadership and direction at every sneeze. Lack of control, lack of roles and responsibilities, or consequences for behavior.

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Post ID: @ea+1m0fsvn3a

My intuition is membership is going to fall off a cliff, and this is going to blow up in their faces. This really is a disaster in the making . I sit back and watch the show.

Also, what bothers me most is the ZERO guidance regarding responsibilities after major team changes. Where/how we fit into the company and "strategic plan" would be helpful to know. The constant team changes have not been addressed, cutting into morale. I'm not even quite sure what I should be doing at this point.

It just shows a lack of true leadership skills.

It seems like the company is being run by a teenager with unaddressed ADHD hopped up on caffeine, sugar battling the visceral urges and choices of playing fortnight or pleasuring themselves with no clear path.

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Post ID: @dw+1m0fsvn3a

@OP Even before all of this happened Centene had an absurd volume of vendors. It is genuinely outrageous.

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Post ID: @bm+1m0fsvn3a

@b5 no wonder social security is going to run out.

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Post ID: @bk+1m0fsvn3a

@OP great questions.

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Post ID: @bj+1m0fsvn3a

A few of us horses are just plain f’in tired of being worked to death and undervalued as PEOPLE .

We all can see how well the NY AI renewal experiment worked out . We can see how well the Philippine project has worked out .

Entire teams have been decimated, yet they are making more management positions and less experienced workers to do the work.

We’d probably have more job security and better benefits in a factory at this point .

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Post ID: @be+1m0fsvn3a

Correct. And with A.I. the jobs are not simply moved somewhere else, they are GONE forever. (Replaced by AI Agents in data centers) The problem we will face is this: AI Agents are not consumers and they don’t pay taxes.

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Post ID: @b5+1m0fsvn3a

It is all about A.I. but they are hiding it from the government. Look up: (post labor economy)

Cognizant integrates artificial intelligence into its TriZetto healthcare platforms to automate administrative workflows, optimize claims processing, and streamline electronic prior authorizations while keeping clinical oversight in human hands.
Key AI Capabilities and Architecture
TriZetto AI Gateway: Embeds secure generative intelligence and single sign-on access directly into complex software layers.

TriZetto Unify: Employs a headless API model treating AI agents as first-tier users for tasks like prior authorization.

Workflow Optimization: Reduces manual reviews for pending claims by matching them automatically to active authorizations.
Core Platform Focus Areas

Claims Administration: Lowers operating costs and speeds up decision-making for health plans.

Interoperability: Connects payer and provider data securely through cloud-native frameworks

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Post ID: @ay+1m0fsvn3a

They are absolutely using vendors offshore to replace us!

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Post ID: @ah+1m0fsvn3a

@ab “We do what’s right. Not what’s easy.”

They were hellbent on culture, but it was all just a sham. 🤷‍♂️

It’s always been about doing what’s right for margin.

Centene Sarah sold all the best horses in the stable to help them to improve the margin, is handing Cognizant all of the proceeds and more (up to $1 billion) to pull the wagon.

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Post ID: @ae+1m0fsvn3a

@OP Centene doesnt have the horses to do the work like what citi is doing.

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Post ID: @ab+1m0fsvn3a

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