Point32Health may have begun to reduce its losses with the decision not to cover GLP-1s for weight loss in the new year, but that hasn’t stopped the state’s second-largest health insurer from shedding employees.
Point32 said Monday it eliminated 100 employees. The layoffs represent 2.3 percent of the Canton-based organization’s workforce, and come on top of 110 positions eliminated in March and 254 in October.
“We regularly review our organization to ensure our teams and department functions are optimally set up to deliver for our members and customers. As a result, we made the difficult decision to restructure some teams in select departments,” the insurer said in a written statement.
It was unclear if more layoffs are planned. The insurer added that it would continue to assess its operations and workforce.
The budget belt tightening has proceeded in the midst of an ongoing turbulent financial time for the nonprofit insurer, which is the parent organization for both Harvard Pilgrim Health Care and Tufts Health Plan. In 2025, Point32 marked its fifth year of multi-million dollar operating loss, with a $301 million operating loss on $9.8 billion in revenue. Those numbers could have been far worse, as they had already accounted for $198 million of the 2025 losses the prior year.
Recent red ink was driven by the cost and popularity of GLP-1 drugs. While the insurer announced in May it would stop automatically covering the pricey drugs for obesity starting in 2026, there were other drivers of medical expenses that are harder to reckon with. The insurer spent more on cancer treatments and behavioral health care services, and saw high-cost claims for certain care, including for cardiac conditions and sepsis.
Executives viewed 2026 as a bridge year that would bring substantial financial improvement, and were working on a variety of ways to stem ongoing losses. Among them, the company said it formalized an approach to detecting waste, and was working to drive members to lower-cost providers. It has also brought some out of network providers into the network, as part of an effort to reduce spending.
Point32 is by no means an outlier in the market. Many health care companies have faced financial struggles the last few years, including the state’s largest insurer, Blue Cross Blue Shield of Massachusetts.
In the midst of suffering its second-worst year of operating losses in its history, Blue Cross said it too had recently taken steps to reduce administrative costs. Approximately 270 employees took a voluntary buyout. The insurer also said it is eliminating an undisclosed number of positions.
Jessica Bartlett can be reached at jessica.bartlett@globe.com. Follow her @ByJessBartlett.