UPDATED: Tuesday, January 29, 2013 --- 8:10 a.m.
MADISON, Wis. (AP) -- WPS Health Insurance has notified the state it will begin laying off about 450 employees at the end of March.
The layoffs are mainly because the company lost two major federal contracts. Two-hundred-50 people in Monona and Madison and 201 people in Wausau are affected. The Monona-based nonprofit health insurer anticipates additional layoffs if it doesn't find new business to replace the federal contracts.
WPS CEO Mike Hamerlik to the State Journal last November that up to 600 employees could lose their jobs in 2013. The company lost contracts to process Medicare claims as well as manage care claims for the military in 21 states.
The contracts made up about 40 percent of the company's annual revenue last year.
Information from: Wisconsin State Journal, http://www.madison.com/wsj
Copyright 2013: Associated Press
Posted Monday, January 28, 2013 --- 5:21 p.m.
Information from the Department of Workforce Development:
DWD has received the following Wisconsin Business Closing and Mass Layoff (WARN) notice:
*Wisconsin Physicians Service, Madison, Monona and Wausau*--
Approximately 451 workers affected by displacements starting March 29, 2013, at six locations (one in Madison, four in Monona and one in
Wausau). DWD will work with its regional partners, the North Central and South Central Workforce Development Boards, to provide rapid response
Note: In a letter sent to the DWD, WPS said the lay-offs are in response to competitive pressures and contract losses in the federal government contracts market.