A policy shift proposed by the U.S. Department of Health and Human Services could cost Chesterfield County more than 1,000 jobs by shuttering a Medicare call center there next year.
The department is proposing limiting bidders for its multibillion dollar 1-800-MEDICARE contract to a limited number of telecommunications carriers, which would exclude General Dynamics Corp., the Virginia-based defense contractor that's currently administering the program.
The Chesterfield General Dynamics Information Technology call center — the largest of the company's several — provides information to beneficiaries and caregivers regarding Medicare benefits.
The current contract, awarded in 2003, expires May 31, 2013. If the federal agency's proposal is finalized, the center would close then, eliminating 1,084 jobs.
"It would be a very significant job loss," said Rob Doolittle, a spokesman with General Dynamics, noting that the company would be forced to close several other call centers in other states as a result.
"Really, the change in procurement strategy will preclude us from competing for the work we do today, and do very well we think," he said. "We're really just looking for an opportunity to compete again for the work that we're already doing."
Rep. J. Randy Forbes, R-4th, on Monday sent a letter to Department of Health and Human Services Secretary Kathleen Sebelius asking for answers.
Calling it an "arbitrary decision," Forbes wrote that "not allowing General Dynamics to again compete for this contract could result in devastating job losses in Virginia."
Forbes also claimed in his letter that the change would not only lose jobs and limit competition for the contract, but also cost tax dollars.
"The American people have a right to know why their hard-earned money is being wasted by this administration," he wrote.
Representatives from the Department of Health and Human Services could not be reached for comment on the proposal.
"This is, at this point, purely speculative," said Will Davis, Chesterfield County's economic development director.
Davis said Monday that "it appears to be something that needs to be worked out at the federal level," but added: "Jobs are important in Chesterfield, and we'll do all we can do to ensure that we keep them."
In his letter to Sebelius, Forbes asks for a written explanation for the proposed bidding process change by Friday.
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