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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Premera Blue Cross expansion could bring 250 new jobs


Mason workers lay bricks for Premera Blue Cross's $12 million expansion along East Sprague Avenue in Spokane. 
 (Brian Plonka / The Spokesman-Review)

A $12 million Premera Blue Cross expansion that will enable the company to hire an additional 250 employees should be completed in June.

The 135,000-square-foot building, under construction for the past year and a half, was made possible in part by a $700,000 economic development incentive funded by unclaimed lottery winnings. Premera, a non-profit health insurer, was the first beneficiary of the Economic Development Strategic Reserve Account. The fund was formed by the governor and state legislature to give Washington another tool for recruiting or retaining businesses.

In Spokane’s case, the winnings could parlay into a jackpot of more than $8.8 million in annual wages to the area.

Gail Keeling, general manger for the operation at 3900 E. Sprague Ave., said some jobs will start at about $35,000 a year plus benefits but many positions will pay significantly more. Jobs will encompass claims, member services, sales and billing and include positions staffed by nurses.

Sixty jobs have been filled since construction began and the rest will become available through attrition as positions at the Seattle office open and are replaced in Spokane, he said.

The new construction adds a third building to the existing complex. The 135,000-square-foot structure will have 45,000 square feet of office space and 90,000 square feet of parking. Together the three buildings will have the capacity to accommodate 650 or more employees, Keeling said, including 125 who are temporarily working in leased space at North Pointe but will relocate after construction is finished.

Medical Services Corp. was originally headquartered in the East Sprague office when the company merged with another insurer, Blue Cross of Washington, in 1998.

Premera is headquartered in the Seattle area but company officials wanted to build another office to decentralize services in case a massive snowstorm or other event caused an interruption in member services.

Executives originally considered expanding offshore or opening an office in another state, Keeling said. After deciding that moving outside the Northwest wasn’t in the best interest of members, the company decided to expand one of its two other offices, located in Spokane and Bend, Ore.

Premera officials were deciding between the two cities when Gov. Chris Gregoire and state economic development officials authorized the incentive.

Keeling said of the incentive, “$700,000 on a $12 million project was the deciding factor in where we were going to go.”

Spokane turned out to be a great choice because of a large medical community and the availability of an educated workforce, he said, adding, “We have people coming in already knowing the terminology.”