A major St. Charles County employer will be closing its doors this June.
SERCO employees process Affordable Care Act applications at the company's facility in Wentzville.
The company was awarded a $1 billion contract by the Centers for Medicare and Medicaid, and operates several sites around the country.
On Wednesday a SERCO employee contacted News 4 after hearing the facility was planning to close.
On Thursday a CMS spokesperson issued the following statement."To maximize operational efficiency outside of open enrollment periods, SERCO, a CMS contractor that supports the Health Insurance Exchange is scaling down their activities. The work that SERCO does to support the Exchange is seasonal in nature, and is staffed to handle the demands of open enrollment periods. As has been done in previous years, we will continue to work with contractors to manage staffing levels throughout the year to meet consumer demand." News 4 learned the closure will impact 850 Missouri employees, and those employees will begin receiving layoff notifications this month.
Investigative Reporter Chris Nagus visited SERCO on Thursday and asked a manager if severance packages will be awarded to employees, but the manager was unable to comment.
News 4 also learned the decision to scale back was made in 2016 and does not reflect any new budget decisions.
Greg Prestemon, the CEO of the St. Charles County Economic Development Council and tells News 4 his office hasn't been notified of the layoffs.
Prestemon says unemployment in St. Charles County is below 2 percent, and adds "there's lots of hope for people looking for jobs in St. Charles County right now."
Copyright 2018 KMOV (Meredith Corporation). All rights reserved.