Major Vision Insurer Threatens To Leave, Taking 2,100 Local Jobs
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RANCHO CORDOVA (CBS13) – A local big business is threatening to leave California and take more than 2,000 jobs with it.
Vision Service Plan (VSP) employs 2,100 people locally, and many are worried that unless the state changes their policies, this move could become a reality.
Teresa Clements has worked at VSP for 22 years, and hopes it doesn’t come to that.
“I have a son in school here, and needs to finish it out. So, I don’t know,” said Clements.
The threat of relocation comes after the state made a decision that’ll keep VSP from competing for 2 million new customers once the Affordable Care Act takes effect in 2014.
“To see one of our own actually decide to leave will be a big problem,” said Sanjay Varshney, Dean of Sacramento State University’s School of Business.
Varshney says the state needs to work hard to keep VSP in the Sacramento region.
“These are very good jobs, very good paychecks, and VSP is a very strong member of the community,” said Varshney.
Under pressure, California is now reconsidering the decision to effectively lockout companies like VSP under the new health care law.
Still, Clements is worried the state won’t change its policy, and doesn’t have much faith.
This could have a huge impact on the immediate area in Rancho Cordova too, which extends far beyond the employees.
“California has to be serious about helping our business and taxes, it’s very expensive,” said Clements.
After pressure from local politicians and business owners, the state decided last night to revisit the issue next month.
“The question is, can we really afford to see more companies like VSP continue to move out of the region and not leave us with any new companies,” said Varshney.
VSP insures one in three people in California.