The private contractor that has handled Medicaid claims for North Carolina for the past decade is laying off 97 people in the wake of a contract cancellation.
ValueOptions has notified the N.C. Department of Commerce it plans to lay off 77 workers in Morrisville and 20 in Charlotte between January and April. The workers, mostly care managers and clinical services assistants, perform utilization review of higher levels of Medicaid behavioral health services.
The N.C. Division of Mental Health, Developmental Disabilities and Substance Abuse Services is transferring the Medicaid contracts to local government organizations that will manager services for specific regions of the state. The organizations could hire some or most of the ValueOptions workers who will be laid off, said ValueOptions spokesman Tom Warburton.
ValueOptions staff reviews utilization of services for mental health and substance abuse, as well as inpatient, residential and outpatient care.
Norfolk, Va.-based ValueOptions employs 220 in North Carolina and will keep about 120 in Morrisville after the layoffs. The remaining employees manage employee assistance programs and other behavioral healthcare services for commercial and other insurers.