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Insurance marketplace company GoHealth laid off 69 employees in March, Endpoints News has learned, out of a workforce that last year totaled around 2,500.
GoHealth did not respond to Endpoints’ repeated requests for comment.
The cuts affected people across different departments, according to a document seen by Endpoints that detailed the reductions. GoHealth gave an employee headcount at the end of last year in a securities filing.
Fewer consumers have been switching health insurance plans compared to previous years as Medicare Advantage plan benefits stay flat, CEO Vijay Kotte told investors during the company’s fourth quarter earnings call on March 14. As Medicare plans struggle with profitability and regulatory red tape, there’s not going to be a lot of growth in new plans, while others are likely to exit certain geographic markets, he said.
In 2022, the Chicago-based company laid off around 800 employees, or 20% of its workforce, in an effort to control its net losses despite revenue growth, and as investor enthusiasm for digital health companies shriveled after the pandemic.
Founded in 2001, GoHealth has shifted from matching consumers and businesses to health insurance plans online to its current focus on pairing seniors with Medicare plans. The company went public in 2020 at a valuation of $914 million, one of healthcare’s largest IPOs of the year.