Peabody Energy Retirees Stand To Lose Health Benefits, Some Organize Class-Action Lawsuit

[Northeast Agent]

Peabody Energy Retirees Stand To Lose Health Benefits, Some Organize Class-Action Lawsuit

Ward has Medicare, but he depended on his Peabody retiree medical account to cover his $300 monthly bill for supplemental insurance, in addition to dental and prescription insurance.

“I’ll just have to pay it out of my Social Security. It’s the only thing I can do. Either that or do without it,” he said. “But if you have to go to the hospital then you’re out big money.”

Earlier this month, Peabody warned in a filing with the U.S. Securities and Exchange Commission that it could face a second bankruptcy within five years if it does not implement cost-cutting measures.

 

[somarco]

@leevena might offer some insight into this.

Retiree medical has been on the chopping block for the past few years. Big companies (IBM, ATT, CocaCola, etc) have successfully cancelled retiree medical and replaced them with retiree medical HRA.

AFAIK this has only worked with non-union employees. I don't believe the article referenced any union employees or benefits, so they might be successful in this move.

Retirees are squeezed. If they challenge and are successful then the company eventually goes BK they lose again and move to the back of the line. Seems like any pushback is simply delaying the inevitable.

 

[leevena]

Hi Bob, hope you guys had a great Thanksgiving. A private employer can make changes, including cancellation, of a health plan as long as it does not conflict with the SPD. If the SPD contains wording that promises benefits for a specified period ( example; for 25 years after retirement, for lifetime, etc.) then the employer could be held to it. However, if the wording is not specific, or contains language such as “employer reserves the right to change, modify, etc., doubt it would hold up in court.

It appears the attorneys will be the only ones profiting.

Keep in mind, I am not an attorney!

 

[Northeast Agent]

Retired City Workers Recoil at Coming Cost-Saving Medicare Shift

Nearly 250,000 retired New York City employees and their spouses could have their health insurance changed to “Medicare Advantage” plans managed by private insurers as soon as July 1, New York Focus has learned.

Retirees, who are pushing to delay the switch, say they are worried that a switch away from their current Medicare plan could lead to dramatically higher out-of-pocket costs and a smaller network of providers.

 

[somarco]

Retirees, who are pushing to delay the switch, say they are worried that a switch away from their current Medicare plan could lead to dramatically higher out-of-pocket costs and a smaller network of providers.

THIS ^^^^

 

[Northeast Agent]

New York City Unions Prepare to Shift Retirees Off Medicare

Alex Lawson, executive director of Social Security Works, noted that Medicare Advantage is being considered at a time when organized labor is under attack from multiple levels, including over pensions and retiree health care. Unlike traditional Medicare, Medicare Advantage invests heavily in sales representatives who market their products nationwide. “They always have an answer, but it’s just like if you’ve ever been pitched to buy a timeshare,” Lawson said. “Yeah, those people make a good pitch; it doesn’t change the fact that it’s just a hustle.”

 

[DayTimer]

“Yeah, those people make a good pitch; it doesn’t change the fact that it’s just a hustle.”

Every time I start to warm up to selling Medicare Advantage plans, I always fade away from it for that reason exactly: I cannot escape the feeling that it is just a hustle - and not a good one.

 

[Northeast Agent]

More than 45K NYC retirees opt out of city’s new Medicare plan over ‘bait and switch’ concerns

https://www.nydailynews.com/news/po...0220214-msftkx7qs5g4vehntub7rmvd5q-story.html

But Donna Armillas, a 78-year-old retired city schools supervisor, called bull on Adams’ justification and said she’s concerned that she would be denied care under the Advantage plan due to convoluted preauthorization procedures that did not exist under the old coverage.

“It’s absolutely wrong. It is a bait and switch,” said Armillas, who has already filed to keep her old plan at a $191 monthly fee. “I want to be able to choose my doctors. I don’t want to have to go through a process where I have to ask permission to have a procedure.”