GE retirees upset by planned Medicare cut

LYNN – A River Works union official said a General Electric plan to eliminate supplemental Medicare coverage in January could force retirees 65 years or older to pay twice for replacement coverage on the open health-care market.International Union of Electrical Workers Local 201 Business Agent Ric Casilli said retirees received letters from the company last week informing them of the supplemental cut. Casilli said retirees angry over the pending cut are calling him seeking information.”We knew this was coming when they wouldn’t negotiate the plan with us,” Casilli said.GE spokesman Dominic McMullan said eliminating supplemental coverage is not related to contract negotiations completed in June between company and union negotiators. He called the supplemental cut “consistent with trends among large companies.””It allows GE to offer greater choice in coverage while striking a balance among our obligations to employees, retirees, and shareowners,” McMullan said.The supplemental coverage bridged Medicare coverage gaps in retirees’ insurance and cost, Casilli said, $123 a month for retirees. He said retirees are shopping for plans to replace the supplemental coverage.Nahant retiree James Cunningham said the letter he received from the company stated retirees who held hourly wage jobs at River Works were invited to work with health plan counselors to “enroll in an individual plan that best suits your needs.”The letter also indicates “company financial support” may be available to some retirees to obtain other supplemental.”I said, ?You’ve got to be kidding me,’ when I got the letter,” Cunningham said.He retired five years after working 42 years at the River Works. He is not sure what he will do to make up for losing supplemental care.”I think I will be paying close to $300 a month,” he said.Casilli said union leaders are “reviewing the possibility” of taking legal action against GE over the supplemental cut similar to the lawsuit two retired salaried workers launched against the company last year.The two New York residents contend in a federal court filing that GE violated federal law by changing salaried retirees’ supplemental care plans. GE spokesman Richard Gorham last year said the company planned to aid salaried retirees with a reimbursement account and access to a Pharmacy Assistance Fund.