Health IT

Who says government doesn’t create jobs? Here’s one example that it actually does

In this election cycle, we have heard a lot from both candidates about the role of government. From the Republicans, we have heard the all-too-familiar argument that the government is actually a hindrance in job creation and in business success. Many, including I, an Obama backer, disagree. I think government needs to play a supportive […]

In this election cycle, we have heard a lot from both candidates about the role of government. From the Republicans, we have heard the all-too-familiar argument that the government is actually a hindrance in job creation and in business success.

Many, including I, an Obama backer, disagree. I think government needs to play a supportive role in every healthy, capitalist, free-market society to help businesses create jobs. In fact, the government already does that. And I am not even talking about the investment in solar company Solyndra that proved to be a failure or the auto bailout that was a big success.

Think about tax abatement as a tool in economic development that so many businesses looking to expand take advantage of. Think about other economic development tools that states and counties use to attract businesses in their region.

But here’s a more recent and direct example.

Health insurance behemoth UnitedHealthcare announced on Friday that it will hire 600 workers in Phoenix, Arizona.

Why?

Because earlier this year, the Department of Defense awarded a contract to the managed-care company that will enable UnitedHealth to start providing health benefits to 2.9 million service members, retirees and their families in and around Arizona starting in April of next year. Those positions are meant to serve a 21-state TRICARE West area. TRICARE is the health insurance program for uniformed service personnel, retirees and their families.

“UnitedHealthcare is thrilled to be expanding in Arizona and honored for the opportunity to serve TRICARE West beneficiaries,” said Lori McDougal, CEO of UnitedHealthcare Military & Veterans, in a news release. “Arizona’s workforce includes many people with TRICARE experience, and we look forward to working with them to provide TRICARE beneficiaries with the dependable, accurate and responsive service they deserve.”

So what kind of jobs are available among the 600 positions? There are administrative positions and call center, billing and enrollment positions, but the insurance company is also hiring registered nurses and behavioral health professionals. There will also be jobs for referral coordinators and managers.

Recruiting has already begun and the hiring will be complete by the end of 2013.

To be fair, it’s important to include that another division of parent company UnitedHealth Group is also expanding in Arizona, and the government doesn’t appear to be causing that employment surge. The company’s OptumRx division is looking to hire 400 people in Tucson. When both the groups complete recruiting for these positions, Arizona employees of the company will  number roughly 4,000.

No matter what the source of job creation — through a government contract or organic growth — the good news is more people are being hired at UnitedHealth Group. That’s reason enough to cheer.

 

Photo Credit: Create Jobs from Big Stock Photo]