Employees of FirstEnergy who have their health care and prescription insurance through Local 270, Utility Workers Union of America, AFL-CIO, may find they have been without benefits despite both their and their employer’s payments of premiums to the local.
Local 270 includes workers at the Ashtabula and Perry operations of FirstEnergy, according to the local’s Web site.
An Oct. 26 letter from Frank J. Meznarich Sr., local president, posted on the local’s Web site (www.local270.org), states there has been an “abrupt loss of
coverage under the UMR/ United Health Care system” plan but does not say at what point that coverage ended.
“A very serious problem has surfaced concerning the health care benefits provided by Morgan Waldron (insurance management company). Several days ago, Morgan Waldron informed us that the current claims payer … resigned effective Oct. 31, 2010.”
The Meznarich letter also states that “due to possible litigation concerning this matter, I cannot go into any detail on how we got where we are.”
No one could be reached at the union hall in Cleveland Friday afternoon, and Morgan Waldron did not return the Star Beacon’s call. A member of the local’s Ashtabula Division executive board confirmed “there is an insurance problem” and referred calls to the union hall. He said he did not know how far back the loss of coverage goes.
Ellen Raines, FirstEnergy spokeswoman, said the company is aware of an issue with the Local 270 members’ insurance coverage and is in discussion with union officials on the matter. Meznarich’s letter confirms FirstEnergy is not at fault in the matter.
Raines said union employees have the option of either accepting the insurance coverage offered through FirstEnergy or opting out and obtaining it through the union local. In that case, the company pays its match to the local, which is responsible for paying the insurance premiums.
“We held up our end of the bargain on that,” Raines said. “We met our obligation to meet our end of the funding for Local 270’s health care.”
The Meznarich letter states that the Alpha Group and Medical Mutual “have stepped up, and they will become our health care provider two months early, something they did not have to do,” as of Monday. The letter goes on to outline steps members need to take to confirm their benefits under the new insurer.
Out-of-pocket payments members made in 2010 won’t be applied to the current year’s deductible requirements as set forth by Medical Mutual but will be credited toward the 2011 deductible, states the letter. Meznarich’s letter is addressed to “active and ‘in the box retirees’ of the Cleveland and Ashtabula divisions,” but it gives no indication of how many individuals could be affected by the “very serious problem.”
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