Centene to Cut 69 Hawaii Jobs, Exit Medicaid Market

The layoffs and Medicaid exit take effect beginning January 4, 2027, after Centene ends its Ohana Health Plan.

Updated on Nov. 13, 2026 in Healthcare

Centene to Cut 69 Hawaii Jobs, Exit Medicaid Market

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Centene Management Company LLC will lay off 69 employees in Hawaii starting January 4, 2027, according to a notice filed with the state Department of Labor and Industrial Relations. The company is also leaving Hawaii's Med-QUEST Medicaid market effective December 31, 2026, and ending its Ohana Health Plan.

Why it matters

The Ohana Health Plan provided medical, behavioral health and long-term services to low-income families for nearly 20 years, so its end affects Medicaid coverage across the state. Centene cited rising medical costs, reimbursement rates that have not kept pace with high acuity needs, and federal funding changes as reasons it can no longer operate these programs sustainably.

The notice breaks down the 69 layoffs by site, with 56 permanent terminations at 830 Mililani Street and 11 at Salt Lake Boulevard, while the Ohana Health Plan's roughly 24,000 members must be transitioned as the plan closes. The filing does not state how many of the affected employees will receive new roles with other Centene units.

The players

Centene Management Company LLC

Centene is a large American managed care company that administers government-sponsored health coverage, including Medicaid plans in several states.

Hawaii Department of Labor and Industrial Relations

The state agency that receives mass layoff notices from employers and oversees labor standards and workforce programs in Hawaii.

Med-QUEST

Hawaii's Medicaid program, administered by the state Department of Human Services, which contracts with private health plans to serve low-income residents.

The details

Terminations occur in stages, beginning January 4, 2027, with single exits on January 29 and February 26, 2027. Affected employees are not represented by a labor organization and have no displacement rights, but they are eligible for severance benefits.

October 2026: Medicaid members complete open enrollment period.
December 31, 2026: Centene exits Med-QUEST and ends the Ohana Health Plan.
January 4, 2027: Layoffs of 69 employees begin.
January 29, 2027: A single employee exit is scheduled.
February 26, 2027: A second single employee exit is scheduled.

Market Landscape

Centene's exit from Med-QUEST reduces the number of private managed care plans competing to serve Hawaii's Medicaid population under the state's contracted model. The move reflects the financial pressure that managed Medicaid insurers face when reimbursement rates lag behind the cost of caring for high-acuity members.

Ohana Health Plan members will need to move to a different Med-QUEST plan before the December 31, 2026 exit, so enrollees should watch for notices from the state about their new coverage. Families who depended on the plan's behavioral health and long-term services should confirm their new provider network before the transition.

The takeaway

Medicaid enrollees should check their plan assignment before the end of 2026 and confirm that their doctors and services remain covered under whichever plan Med-QUEST selects.

What happens next

Centene's Hawaii layoffs begin January 4, 2027, with additional single-employee exits scheduled for January 29 and February 26, 2027, and Med-QUEST will assign members who did not pick a plan during the October open enrollment period.