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Published 08/30/2007 By SHARON CASKEY HAYES
Sprint retires picket outside the Embark company offices in Bristol, Tenn.
Thursday. David Grace photo
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Retirees from Embarq, United Telephone and Sprint converged in front of the
Embarq building in Bristol Thursday morning, holding up signs to protest the
company’s plan to cut out company-sponsored supplemental health insurance for
retirees and their dependents.
“They’re trying to take our insurance and they’re cutting back the life
insurance,” said Johnny Thompson, an Embarq retiree and a past president of the
Communications Workers of America Local 3871. “In other words, they’re just
cutting the retirees out of their lives.” Embarq sent letters to retirees in
July, notifying them of the plan to cut the company-sponsored supplemental
health insurance for Medicare-eligible retirees and their dependents as of Jan.
1.
Embarq also plans to cut retiree life insurance to a maximum of $10,000.
The company says the cuts will save it about $30 million a year.
Virginia Kyte, 83, traveled from Greeneville to join the retirees in protest.
Sitting in a wheelchair, Kyte said her husband, L.C. Kyte, died in 1996, shortly
after retiring from Sprint. She said Embarq’s plan could leave her with a hard
choice: buy groceries or medicine. She takes nine pills a day for various
ailments, including diabetes and arthritis, and worries she won’t have enough
money to pay for another supplemental insurance.
“I can afford the insurance I get from them now. But if I have to go and hunt
more insurance, I can’t afford it. I will have to do without,” she said.
“My husband gave his all to that company, and now look what they’re doing to
me,” she said.
Jimmy Kirk, who retired in 1999 after 39 years of service, was joined on the
protest with his wife, Linda.
“I’ve had four heart attacks and my wife’s had cancer. We can’t get insurance,”
Kirk said.
Ron Minnick, who retired from the company in 2004 after 41 years of service,
said employee and retiree benefits have been on the decline with each successive
change in the company’s corporate structure. He said benefits declined when
United Telephone became Sprint, and decreased again when Sprint spun off Embarq.
“If they can get by with this, what’s next?” asked Minnick, adding he wonders if
the company will eventually cut out retiree pensions. “You think you’re fixed
for life, and then you find out you’re just fixed,” Minnick said.
The local protest was one of several being held this week at Embarq locations
around the country. Thompson said similar protests were planned for New Jersey,
Washington, Missouri, North Carolina, Indiana and Ohio.
“We’d like to get enough media coverage to get Mr. Hesse — the CEO — to come and
see what he’s doing to the people,” Thompson said.
Dan Hesse is chief executive officer of Embarq.
“When you sit in an office you can’t see how people live. But for some people,
it’s going to come down to choosing between groceries or medicine. That’s what
it comes down to,” Thompson said.
Embarq spokesman Tom Matthews said the plan is designed to help the company
remain competitive. He said retirees will still be able to get supplemental
health insurance — it just won’t be company-sponsored insurance.
Matthews said Embarq sent letters this week to affected retirees and dependents,
notifying them that Aetna will offer several options for guaranteed supplemental
coverage for Medicare-eligible retirees and dependents.
“One concern that people in those age groups have is whether a pre-existing
condition will preclude them from coverage. But Medicare-eligible individuals
won’t have to provide evidence of insurability and won’t be subject to any
pre-existing condition limitations,” Matthews said.
Embarq has 14,400 retirees nationwide. Of those, 10,000 are Medicare-eligible.
And of those, 8,600 retirees and another 3,300 dependents currently are covered
by the company-sponsored supplemental health insurance
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