FirstSolutions announced several months ago that FirstPlan of Minnesota would cease operations at the end of 2009. The company’s headquarters in Canal Park began reducing staff a year or more ago and the trend continues there. FirstSolutions sold their Two Harbors clinic (SuperiorHealth Center) to Lake View Memorial Hospital in July of 2008.
FirstSolutions has been advertising the availability of their skilled labor force in an effort to retain, and possibly grow their claims processing operation located on 17th Avenue in Two Harbors. It appears their efforts have so far been unsuccessful. Most, if not all staff working at that location have received layoff notices with an effective date of April 30, 2010. FirstSolutions had already trimmed several positions in claims processing over the last several months.
At it’s high point, the FirstSolutions claims processing center in Two Harbors employed somewhere between 75 – 85 people. These were decent jobs with decent pay and good benefits. These were jobs that helped support families and our local economy.
FirstSolutions continues to operate their SuperiorHealth Pharmacies in Two Harbors & Silver Bay,their home health agency, SuperiorHealth Community Care in Two Harbors and clinics in Duluth and Proctor.
The once large and proud presence of FirstSolutions/FirstPlan in Two Harbors will fade even more with the closure of their local claims processing operation. We wish the best to all of the affected employees and we continue to hope that FirstSolutions will be able to attract work as they continue to seek opportunities to retain employees.
Notes: From the FirstSolutions website, “FirstSolutions is a nationally recognized leader in providing health management services. Originating in 1944 in Two Harbors, the organization was created by people with a vision for offering personalized health-related services.” That site is labeled as being under construction. The First Plan of Minnesota website is still up and there is no indication that the company is wrapping up operations.
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It should be noted that the employees were told at the meeting when the lay-off date was confirmed that one of the major reasons the facility is being closed is that Blue Cross/Blue Shield (FirstSolutions processes claims under contract for BCBS) will be outsourcing all their government services claims to a processing center in India.
So any claims to MN Care or any other government subsidized program that is serviced by BCBS and paid for by MN tax dollars will see those claims processed by citizens of the country of India instead of MN workers.
I’m as free market as the next guy, but our tax dollars should not be walking overseas and putting Minnesotans out of work. Period.
Excellent comment! I wonder how BCBS managed to get that one past the State when they were negotiating contracts. I know that some State grants and contracts have what amounts to a “buy American” clause in them. Does this decision by BCBS affects the employees of their claims processing centers on the Iron Range?