USW seeking injunction to stop Alcoa from changing retiree health coverage
The United Steelworkers union is seeking a preliminary injunction to stop Alcoa USA Corp. from unilaterally changing the health insurance benefits of workers who retired from the company before June 1, 1993, including spouses, surviving spouses and dependents.
Earlier this year, Alcoa told retirees that it would terminate their insurance coverage on Dec. 31 and replace it with a private Medicare exchange program and Health Reimbursement Arrangement.
Under the new program, retirees must choose from among up to 77 Medicare Advantage, Medigap and Part D drug plans, based on the geographic area, the USW said Thursday.
“Employee benefits are a critical part of our collective bargaining agreements with Alcoa,” USW District 7 Director Mike Millsap said in a statement. “The company agreed to provide these benefits, and cutting off this coverage during a deadly global pandemic is not only immoral, it’s unlawful.”
The USW is seeking the injunction in a lawsuit in U.S. District Court in the Southern District of Indiana.
Alcoa on Thursday declined to comment on pending litigation.
The USW said the enrollment process in the private Medicare exchange program can take hours on the phone or online and can be confusing.
“Alcoa has said that a retiree who fails to sign up for the HRA by Dec. 31 will be prevented from signing up or receiving any HRA contribution for medical expenses or premiums in the future,” the union said.
“We’re asking the court to do right by these men and women, since they will be irreparably harmed without immediate action,” Mr. Millsap said.