SYRACUSE, N.Y. — POMCO Group announced it has cut approximately 50 positions in a business unit the firm created under a contract with Health Republic Insurance of New York, which is being shut down by insurance regulators.
Syracuse–based POMCO released a statement about the staff reductions late Friday afternoon.
The employee-benefits firm also indicated that more job cuts could be coming, saying in the statement, “…we do expect further changes in staffing and other areas within the Health Republic business unit.” That’s even as it remains under contract to service Health Republic members over the next six months as that firm decommissions operations.
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POMCO Group is a third-party administrator of self-funded health-care and risk-management plans.
Health Republic is one of the Affordable Care Act’s consumer operated and oriented plans (CO-OPs), which are private, member-governed health-insurance companies.
Anthony Albanese, New York’s acting superintendent of financial services, on Sept. 25 announced that “given Health Republic’s financial situation, commencing an orderly wind down process before the upcoming open enrollment period is the best course of action to protect consumers,” according to the POMCO news release.
The New York State Department of Financial Services (NYDFS), the Centers for Medicare and Medicaid Services (CMS), and the New York State of Health (NYSOH) health-plan marketplace were all involved in the decision on Health Republic’s future.
POMCO in January 2014 created a separate business unit to provide member services, claims administration, and other back-office services under its contract with Health Republic.
The business unit servicing the Health Republic account “increased rapidly” to more than 125 employees, POMCO said, as the health-insurance plan that was originally designed for 30,000 members grew to surpass 215,000 members.
Contact Reinhardt at ereinhardt@cnybj.com
