State Projected to Realize $6M in Additional Tax Revenues, $10.6M Increase in GDP
Rhode Island Governor Gina M. Raimondo and the Rhode Island Commerce Corporation today announced that Magellan Health, a leader in healthcare solutions, will expand their Rhode Island presence with 100 new jobs.
"I am excited to see Magellan expand their Rhode Island presence with these high-quality, high-paying jobs," said Governor Gina Raimondo. "There are more jobs in Rhode Island now than in any other time in our state's history, and it is my goal to have Rhode Islanders first in line for these jobs. This is why we have invested in job training and in the Rhode Island Promise scholarship, to ensure Rhode Islanders have the skills they need for jobs that pay."
"Magellan Health is excited to expand our existing operations in Rhode Island. Magellan has offices in 26 states and Washington, DC, but we chose to expand this area of our business in Rhode Island based on the access to talent, our existing footprint in the state, as well as the incentives offered by the Rhode Island Commerce Corporation," said Barry M. Smith, chairman and CEO of Magellan Health. "We thank the Rhode Island Commerce Corporation and Gov. Raimondo for this opportunity and look forward to increasing our presence here."
With an office on Aquidneck Island, Magellan Health delivers innovative specialty solutions for the fastest growing, most complex health areas, including integrated management for complex populations, Magellan Rx Management is the company's leading, value-based pharmacy benefit management organization.
Economic impact analysis by third-party consultant Appleseed Inc. projects an increase of approximately $6 million in state tax revenues over twelve years, and an increase in annual state GDP of $10.6 million by 2021 as a result of Magellan's expansion
"Magellan Health is a company that has options across the country. We're pleased that Magellan's leaders have chosen to invest in Rhode Island, aiming to more than double their workforce here," said Rhode Island Secretary of Commerce Stefan Pryor. "Magellan is not alone. This is the 18th company expanding or landing in Rhode Island with support from our Qualified Jobs program. Third-party economic analysis shows that this will be a revenue positive transaction for our state."
The company will expand their Rhode Island presence later this year utilizing an award of $2.1 million under the Qualified Jobs Incentive Act, over a term of 10 years and with a requirement of the company to maintain the new jobs in Rhode Island for at least 12 years. No tax credits are disbursed until after the jobs are filled and paying taxes for one year.
As a result, Magellan will create 75 new full-time jobs for which it will receive tax credits, as well as an estimated 25 additional full-time jobs. The new jobs are projected to be filled over the next 3 years by a range of healthcare, finance, data science, and administrative professionals, including pharmacists, pharmacy technicians, data analysts, and project managers, with an anticipated median salary of $100,000. In addition, the company will retain its approximately 86 current Rhode Island-based jobs.
Magellan Health is the 18th Qualified Jobs deal since the program was implemented. Cumulatively, the program is helping to foster more than 1,500 new jobs in Rhode Island in a range of industries and job types.