Health insurer to lay off 550

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Thursday, Dec. 14, 2000 | 10:54 a.m.

PacifiCare Health Systems of Santa Ana, Calif., seeking to resurrect faltering earnings, announced Wednesday it will lay off 550 employees, or about 6 percent of its work force.

Kayla Arnesen, PacifiCare of Nevada Inc.'s spokeswoman, said three out of 90 employees in Nevada were laid off this week.

PacifiCare, the country's largest Medicare health maintenance organization, said most of the lost positions are marketing-related, and the changes are not expected to affect service.

The company expects severance and related expenses to cost it $15 million to $17 million, or 24 to 28 cents per share, in the fourth fiscal quarter of 2000.

The layoffs continue efforts by PacifiCare to improve earnings. The company decided in November to limit enrollments in its Secure Horizons Medicare health plan in parts of California, Texas, Washington, Oregon and Colorado.