Eight Private, Out-Of-State Firms Bid To Take Over State’s Risk Management Division Services. Workers Say, “Keep It Local!”

March 21, 2016



On March 17, BGS’ Purchasing Division unsealed the bids from eight private, for-profit companies who want to take over workers’ comp, liability, etc. services from the State’s Risk Management Division. The State proposed cutting the Division and its dozen-plus workers as part of its budget package. VSEA members in the Division have been fighting back for months now at the State House, and now they will be able to openly question why lawmakers would want to contract these services to an out-of-state firm, driven by profit.

Looking at the list of bidders, none are based here in Vermont, so taxpayer dollars could now go to:

  • Sedgwick Claims Management Services (HQ in Memphis TN);
  • Gallagher Bassett Services (HQ in Tucson, AZ);
  • The Lawson Group (HQ in Concord, NH);
  • CorVel Enterprise Co. (No Vermont Office Listed);
  • Helmsman Management Services (HQ in Boston, MA);
  • PMA Management Corporation of New England (HQ in Blue Bell, PA);
  • Cross Insurance TPA (HQ in New Gloucester, ME); and
  • FutureComp & York Risk Services (HQ in Parsippany, NJ)

“One of the primary messages our Risk Management workers are delivering is that they are Vermonters serving Vermonters, but equally important, they are state employees serving state employees,” says VSEA Communications Director Doug Gibson. “They know the nature of all state work, as well as the state worksites, which is huge. Then there’s the question of why Vermont would want to send taxpayer dollars to New Jersey, Arizona or anywhere else outside our state. There’s more than 100 years of experience in this small office, and now we just want to throw all that away to take a chance on an unproven entity from Arizona or Massachusetts? It makes zero sense.”

VSEA is asking folks to call or message your lawmakers to ask them to keep the State’s Risk Management Division local and State-run. Thanks!

Find contact info for your lawmakers here!

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