Hundreds of jobs at a Connecticut healthcare company may be in jeopardy.
More than 50 IT positions at Health Net in Shelton have been outsourced since March, but employees tell NBC Connecticut that may just be the beginning.
Workers today revealed the company told them they could end up jobless because of an acquisition by United Healthcare.
“They're not looking to take the employees with them just the business,” said Rebecca Ramahlo who, along with another Health Net employee who emailed NBC Connecticut, and a third who didn’t want to appear on camera, said they heard those words at a meeting in July.
They were told the company’s Northeast region would be sold to United Healthcare minus its 1,400 employees.
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A Health Net spokeswoman called the move a merger and said it still subject to regulatory approval. She also said the company is stable and whatever changes may come won't be for a number of years.
Still Ramahlo sees the writing on the wall. “They’re hoping to get that done as soon as possible and when they do then of course the company will be sold to another co and pretty much well all be out of a job.”
A state Department of Labor report indicates more cuts obtained today. The report said 100 Health Net workers are eligible for the Trade Act, which are federal benefits for people who lose their job to outsourcing.
Health Net said it can't comment on the future of its employees until the merger goes through.
In the meantime employees are left to question their job security.
Ramahlo said, “Morale is suffering, I think personally because some people have been there 20 plus, 15 plus years..they have been there a long time people are scared apprehensive they don't know what happening.”
And companies like Giove’s Pizza Kitchen that cater to Health Net employees are wondering about their own future. “If they’re laying employees off they’re going to have to do other cut backs. And usually lunches are something that's going to go and in the end that's going to affect us,” said Rose DeVellis.
Health Net said if they get regulatory approval and the sale goes through employees at Health Net and United Healthcare will still work together for sometime during the transitional phase.
