News Briefs: Clover to Cut Workforce; Bright Health Faces Lawsuit
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Apr 21, 2023
Clover Health Investments Corp., the Medicare-focused insurtech company, said on April 17 that it plans to cut 10% of its workforce and outsource its “core plan operations” to UST HealthProof’s technology platform. Clover said the initiatives are expected to generate net annual cost savings of approximately $30 million beginning in 2024. The company has yet to turn a profit; it posted a net loss of $136 million in 2020, $587 million in 2021 and $338 million in 2022. In addition to serving roughly 83,000 MA enrollees across multiple states, Clover participates in the program now known as the ACO Realizing Equity, Access, and Community Health (REACH) Model, which allows participants to share risk and receive capitated payments for serving fee-for-service Medicare beneficiaries. However, the company said in November that it planned to scale back that line of business — reducing total attributed lives and revenue managed by its ACO by up to two-thirds — in a bid to get its medical loss ratio below 100%. Read more
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