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July 22, 2015

Fallon to cut 45 jobs with Total Care shutdown

Fallon Health of Worcester will cut 45 jobs as the health insurance provider shuts down its Fallon Total Care program this September.

A spokeswoman for Fallon confirmed that it had informed state labor officials in a filing that it would cut 45 jobs. The exact number of jobs that will be lost will not be known until the program officially ends, as the company works to find other positions for affected employees, spokeswoman Carrie Wattu said.

“We’re providing additional support for those employees who need help transitioning to other internal and external positions,” she said. “We won’t know exact numbers until we complete our transition of employees at the end of September.”

Fallon announced in June that it would end Total Care, which has served members eligible for both Medicaid and Medicare since October 2013. Through Total Care, Fallon is one of three Bay State insurers that were participating in an insurance program offered in collaboration with MassHealth, the state's Medicaid program, and Medicare.

The decision to end the program was made because it was “not economically sustainable,” the company said. According to Fallon, Total Care has 5,400 enrollees, well short of the 8,000 to 10,000 that former CEO Mary Ritter said the company had expected when the program launched.

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