DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-93,094

HEALTH CARE SERVICE CORPORATION
MARION CLAIMS FRONT E DEPARTMENT
INCLUDING ON-SITE LEASED WORKERS FROM KELLY SERVICES
MARION, ILLINOIS

Notice of Negative Determination
on Reconsideration

On October 27, 2017, the Department of Labor issued an
Affirmative Determination Regarding Application for Reconsideration
for the workers and former workers of Health Care Service
Corporation, Marion Claims Front E Department, including on-site
leased workers from Kelly Services, Marion, Illinois. The notice
is pending notice within the Federal Register.
Pursuant to 29 CFR 90.18(c), reconsideration may be granted
under the following circumstances:
(1) If it appears on the basis of facts not previously
considered that the determination complained of
was erroneous;
(2) If it appears that the determination complained of
was based on a mistake in the determination of facts
not previously considered; or
(3) If in the opinion of the Certifying Officer, a mis-
interpretation of facts or of the law justified
reconsideration of the decision.
The initial investigation resulted in a negative determination
based on no shift in claims processing services to a foreign
country, no imports of claims processing services, no acquisitions
from a foreign country of claims processing services, the firm
not consider a supplier, downstream producer, or named within an
ITC affirmative determination.
In the request for reconsideration the petitioner stated that
the workers of the subject firm should be eligible to apply for
Trade Adjustment Assistance because the request based upon an
assertion that workers were impacted by a shift in services.
Information obtained during the reconsideration investigation
confirmed that the workers of the Marion Claims Front E Department
were not impacted by a shift in services to a foreign country. In
fact, the positions were replaced by workers based within the
United States. Additionally, imports of claims processing services
did not occur, acquisitions from a foreign country of claims
processing services did not occur, the firm is not a supplier or
downstream producer, or named within an ITC affirmative
determination.
After careful review of previously-submitted information and
additional information obtained during the reconsideration
investigation, the Department determines that 29 CFR 90.18(c) has
not been met.



Conclusion
After careful reconsideration, I determine that the
requirements of Section 222 of the Act, 19 U.S.C. § 2272, have not
been met and affirm the original notice of negative determination
of eligibility to apply for worker adjustment assistance for
workers and former workers of Health Care Service Corporation,
Marion Claims Front E Department, including on-site leased workers
from Kelly Services, Marion, Illinois, to apply for adjustment
assistance, in accordance with Section 223 of the Act, 19 U.S.C. §
2273.
Signed in Washington, D.C. on this 8th day of March, 2018.


/s/ Hope D. Kinglock
______________________________
HOPE D. KINGLOCK
Certifying Officer, Office of
Trade Adjustment Assistance




U.S. DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-93,094

HEALTH CARE SERVICE CORPORATION
MARION CLAIMS FRONT E DEPARTMENT
INCLUDING ON-SITE LEASED WORKERS FROM KELLY SERVICES
MARION, ILLINOIS

Notice of Affirmative Determination
Regarding Application for Reconsideration

By application dated September 29, 2017, a state workforce
official requested administrative reconsideration of the Department
of Labor's negative determination regarding eligibility to apply
for worker adjustment assistance, applicable to workers and former
workers of Health Care Service Corporation, Marion Claims Front E
Department, including on-site leased workers from Kelly Services,
Marion, Illinois (“Health Care Service Corporation”). The notice
was published within the Federal Register on October 6, 2017 (82 FR
46835).
Pursuant to 29 CFR 90.18(c) reconsideration may be granted
under the following circumstances:
(1) If it appears on the basis of facts not previously
considered that the determination complained of
was erroneous;
(2) If it appears that the determination complained of
was based on a mistake in the determination of facts
not previously considered; or
(3) If in the opinion of the Certifying Officer, a
misinterpretation of facts or of the law justified
reconsideration of the decision.
The negative determination of the Trade Adjustment Assistance
(“TAA”) petition filed on behalf of workers at Health Care Service
Corporation, Marion Claims Front E Department, including on-site
leased workers from Kelly Services, Marion, Illinois was based on
no shift in services, no acquisition of services, no imports of
services, no secondary worker impacts, and the firm not being
named in a affirmative finding by the United States International
Trade Commission.
In the request for reconsideration the petitioner stated that
the workers of the subject firm should be eligible for TAA because
workers were impacted by a shift in services.
The Department of Labor has carefully reviewed the request for
reconsideration and the existing record, and has determined that
the Department will conduct further investigation to determine if
the workers meet the eligibility requirements of the Trade Act of
1974.

Conclusion
After careful review of the application, I conclude that the
claim is of sufficient weight to justify reconsideration of the
U.S. Department of Labor's prior decision. The application is,
therefore, granted.
Signed at Washington, D.C., this 27th day of October, 2017.

/s/ Hope D. Kinglock
_______________________________
HOPE D. KINGLOCK
Certifying Officer, Office of
Trade Adjustment Assistance



DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-93,094

HEALTH CARE SERVICE CORPORATION
MARION CLAIMS FRONT E DEPARTMENT
INCLUDING ON-SITE LEASED WORKERS FROM KELLY SERVICES
MARION, ILLINOIS

Negative Determination Regarding Eligibility
To Apply for Worker Adjustment Assistance

In accordance with Section 223 of the Trade Act of 1974, as
amended ("Act"), 19 U.S.C. § 2273, the Department of Labor
herein presents the results of an investigation regarding
certification of eligibility to apply for worker adjustment
assistance.
Workers of a firm may be eligible for worker adjustment
assistance if they satisfy the criteria of subsection (a), (b)
or (e) of Section 222 of the Act, 19 U.S.C. § 2272(a), (b) and
(e). For the Department of Labor to issue a certification for
workers under Section 222(a) of the Act, 19 U.S.C. § 2272(a),
the following criteria must be met:
(1) The first criterion (set forth in Section 222(a)(1) of the
Act, 19 U.S.C. § 2272(a)(1)) requires that a significant
number or proportion of the workers in the workers' firm
must have become totally or partially separated or be
threatened with total or partial separation.

(2) The second criterion (set forth in Section 222(a)(2) of the
Act, 19 U.S.C. § 2272(a)(2)) may be satisfied in one of two
ways:

(A) Increased Imports Path:
(i) sales or production, or both, at the workers' firm
must have decreased absolutely; AND
(ii) (I) imports of articles or services like or directly
competitive with articles or services produced or
supplied by the workers' firm have increased, OR
(II)(aa) imports of articles like or directly
competitive with articles into which the
component part produced by the workers' firm was
directly incorporated have increased; OR
(II)(bb) imports of articles like or directly
competitive with articles which are produced
directly using the services supplied by the
workers' firm have increased; OR
(III) imports of articles directly incorporating
component parts not produced in the U.S. that are
like or directly competitive with the article
into which the component part produced by the
workers' firm was directly incorporated have
increased; AND
(iii) the increase in imports described in clause (ii)
contributed importantly to such workers' separation
or threat of separation and to the decline in the
sales or production of such firm.

(B) Shift in Production or Supply Path:
(i)(I) there has been a shift by the workers' firm to a
foreign country in the production of articles or
supply of services like or directly competitive with
those produced/supplied by the workers' firm; OR
(II) there has been an acquisition from a foreign
country by the workers' firm of articles/services that
are like or directly competitive with those
produced/supplied by the workers' firm; and
(ii) the shift described in clause (i)(I) or the
acquisition of articles or services described in
clause (i)(II) contributed importantly to such
workers' separation or threat of separation.

For the Department to issue a secondary worker
certification under Section 222(b) of the Act, 19 U.S.C. §
2272(b), to workers of a Supplier or a Downstream Producer, the
following criteria must be met:
(1) a significant number or proportion of the workers in
the workers' firm or an appropriate subdivision of the
firm have become totally or partially separated, or
are threatened to become totally or partially
separated;
(2) the workers' firm is a Supplier or Downstream Producer
to a firm that employed a group of workers who
received a certification of eligibility under Section
222(a) of the Act, 19 U.S.C. § 2272(a), and such
supply or production is related to the article or
service that was the basis for such certification; and
(3) either
(A) the workers' firm is a supplier and the component
parts it supplied to the firm described in paragraph
(2) accounted for at least 20 percent of the
production or sales of the workers' firm;
or
(B) a loss of business by the workers' firm with the
firm described in paragraph (2) contributed
importantly to the workers' separation or threat of
separation.

Section 222(c) of the Act, 19 U.S.C. § 2272(c), defines the
terms "Supplier" and "Downstream Producer."
Workers of a firm may also be considered eligible if they
are publicly identified by name by the International Trade
Commission as a member of a domestic industry in an
investigation resulting in a category of determination that is
listed in Section 222(e) of the Act, 19 U.S.C. § 2272(e).
The group eligibility requirements for workers of a firm
under Section 222(e) of the Act, 19 U.S.C. § 2272(e), can be
satisfied if the following criteria are met:
(1) the workers' firm is publicly identified by name by
the International Trade Commission as a member of a
domestic industry in an investigation resulting in--
(A) an affirmative determination of serious injury or
threat thereof under section 202(b)(1);
(B) an affirmative determination of market disruption
or threat thereof under section 421(b)(1); or
(C) an affirmative final determination of material
injury or threat thereof under section
705(b)(1)(A) or 735(b)(1)(A) of the Tariff Act of
1930 (19 U.S.C. 1671d(b)(1)(A) and
1673d(b)(1)(A));
(2) the petition is filed during the 1-year period
beginning on the date on which--
(A) a summary of the report submitted to the
President by the International Trade Commission
under section 202(f)(1) with respect to the
affirmative determination described in paragraph
(1)(A) is published in the Federal Register under
section 202(f)(3); or
(B) notice of an affirmative determination described
in subparagraph (1) is published in the Federal
Register; and
(3) the workers have become totally or partially
separated from the workers' firm within--
(A) the 1-year period described in paragraph (2); or
(B) notwithstanding section 223(b), the 1-year
period preceding the 1-year period described in
paragraph (2).

The investigation was initiated in response to a petition
filed on August 24, 2017 by three workers on behalf of workers
of Health Care Service Corporation, Marion Claims Front E
Department, Marion, Illinois (herein known as "Health Care
Service Corporation" or "workers' firm"). The workers' firm is
engaged in activities related to the supply of health insurance
services. The subject workers (HCSC-Marion Claims Front E
Department) are engaged in activities related to the supply of
internal claims processing services. The subject worker group
includes on-site leased workers from Kelly Services.
The petitioner alleged "To lower costs, HCSC shifted some
of their claims processing work to Accenture in Manila,
Philippines, and to Concentrix in India. HCSC supervisors were
sent to those offshore locations to train the replacements
prior to the domestic job separations."
During the course of the investigation, information was
collected from the workers' firm.
With respect to Section 222(a)(2)(A)(ii) of the Act, the
investigation revealed that HCSC-Marion Claims Front E
Department did not increase imports of services like or
directly competitive with the internal claims processing
services supplied by the subject worker group.
With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that HCSC-Marion Claims Front E
Department did not shift the supply of internal claims
processing services, or a like or directly competitive
service, to a foreign country or acquire the supply of
internal claims processing services, or a like or directly
competitive service, from a foreign country.
With respect to Section 222(b)(2) of the Act, the
investigation revealed that HCSC-Marion Claims Front E
Department is neither a Supplier nor Downstream Producer to a
firm that employed a group of workers who received a
certification of eligibility under Section 222(a) of the Act, 19
U.S.C. § 2272(a).
Finally, the group eligibility requirements under Section
222(e) of the Act, have not been satisfied because Criterion (1)
has not been met since the workers' firm has not been publicly
identified by name by the International Trade Commission as a
member of a domestic industry in an investigation resulting in
an affirmative finding of serious injury, market disruption, or
material injury, or threat thereof.
Conclusion
After careful review of the facts obtained in the
investigation, I determine that the requirements of Section 222
of the Act, 19 U.S.C. § 2272, have not been met and, therefore,
deny the petition for group eligibility of Health Care Service
Corporation, Marion Claims Front E Department, including on-
site leased workers from Kelly Services, Marion, Illinois,
engaged in activities related to the supply of internal claims
processing services to apply for adjustment assistance, in
accordance with Section 223 of the Act, 19 U.S.C. § 2273.
Signed in Washington, D.C. this 14th day of September 2017.
/s/Hope D. Kinglock
______________________________
HOPE D. KINGLOCK
Certifying Officer, Office of
Trade Adjustment Assistance