Editor's note: An earlier version of this story incorrectly said National Government Services Inc. was closing its local office.
National Government Services Inc., a subsidiary of Indianapolis-based health insurer WellPoint Inc., said on Wednesday that it is eliminating 112 local jobs due to the loss of a government servicing contract.
The company announced the job reductions in a notice to the Indiana Department of Workforce Development. The notice called the move a "plant closing" for legal reasons, but NGS is not going out of business, according to a WellPoint spokeswoman.
NGS's office at 8115 Knue Road on the northeast side of Indianapolis will remain open to service other contracts. The subsidiary will still employ almost 500 people locally after the layoffs and about 2,000 nationally.
An office in Michigan with six employees will close due to the loss of the contract.
NGS processes claims for the federal government’s Medicare and Medicaid programs.
Employees under the contract will be terminated between July 20 and Sept. 28. Positions affected include 27 appeals representatives, 17 claims processors, 15 enrollment representatives and 10 refund investigators.