Humana, Louisville, Ky., said it will cut 2,300 jobs, or 17% of its workforce, over the next year as it consolidates operations and relies more on technology to serve members. The 6.6 million-member insurer will close three of its seven customer service centers by June 30, replacing them with Internet or voice-activated telephone services. Humana said it will take pretax charges of $100 million to $145 million as a result of the cutbacks. It expects to record $75 million to $110 million of those charges in the current fourth quarter, including all severance-related costs. As a result, the company projected per-share earnings of 78 cents to 91 cents in 2002; analysts surveyed by Thomson Financial/First Call had projected earnings of $1.19 per share. Separately, Humana's Florida unit was ordered to pay $8.8 million to HCA, Nashville, in an arbitration settlement over delayed reimbursement. HCA alleged that between 1997 and 1999 Humana failed to pay or made late payments on 3,300 claims filed by 16 HCA hospitals in Florida. -- by Laura B. Benko
Humana to cut 17% of workforce in redesign
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