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Wellmark to Close Subsidiary in Sioux City

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SIOUX CITY, Iowa (AP) - Iowa's largest health insurer is closing its Sioux City office and eliminating more than 100 local jobs.

Wellmark Blue Cross & Blue Shield announced Wednesday that the First Administrators, or FAI, office will close in early 2014. The third-party administrator processes medical and dental claims for self-fund customers in states like Iowa and South Dakota.

Wellmark says concerns about the new federal health insurance law led to the decision, including costs of changing information technology to meet new requirements.

Wellmark says most positions at the subsidiary will be moved to the company's headquarters in Des Moines. Employees can also receive assistance to find other jobs in Sioux City.

The announcement comes a year after FAI completed a major renovation of its Sioux City office and nearly doubled its workforce.