About 700 Washington area employes of HEW's new Health Care Financing Administration were notified yesterday that their jobs will be transferred to Baltimore early next year.
The decision affects about 500 workers at the HEW headquarters building at Third and C streets SW and another 200 in the Parklawn Building in Rockville.
Leonard D. Schaeffer, new administrator of the agency, said in a memo to employes that the transfers will begin the first week in February and be completed by mid-April.
The action came over the protests of Reps. Gladys Noon Spellman (D-Md) and Newton I. Steers Jr. (R-Md.), who sought to delay or avert the transfer.
Peter Kirsch, spokesman for HCFA, said the transfers will consolidate the agency's 2,300 employes in the huge Social Security complex in Wood lawn on Baltimore's west side. HCFA's 1,500 other employes already work at Woodlawn.
The agency was created by HEW Secretary Joseph A. Califano Jr. about 18 months ago as part of a reorganization of the Social Security Administration that Califano predicted would save taxpayers $2 billion a year. HCFA employes handle Medicare and Medicaid claims.
Kirsch said HEW will set up a relocation office beginning Monday. Employes will be paid moving expenses and those who sell their houses will be reimbursed the cost of a real estate commission, he said. Employes who choose not to move will be aided in finding new jobs, although Kirsch pointed out the HEW currently has a hiring freeze.
An aide to Spellman said she had asked Califano to reconsider the plan or at least hold off its implementation until 1960. But HEW officials notified Spellman's office yesterday that Schaeffer, the new HCFA director, wanted to expedite the move.
"Some people can't move, and forthem, this means losing their jobs," the Spellman aide said.
Steers' office has sought to have the move delayed until the General Accounting Office could review the financial savings that Califano claimed would occur because of the consolidation.