From the Southern Pines, N.C. Pilot...
When Helen Kaylor received a letter last summer from Embarq, she didn't want to open it. "I got the letter and it read, 'Important Benefits Informa-tion; Open Immediately,'" Kaylor said. When she opened it she learned that Embarq, the parent company of her former employer, which was known as Carolina Telephone and Telegraph when she worked here, was taking away medical benefits for all Medicare-eligible retirees effective Jan. 1, 2008.
"I couldn't believe it," Kaylor said.
Embarq will alsodrop its $500 annual subsidy for Medicare premiums, as well as coverage that pays partial costs when Medicare payments are below 80 percent of treatment expenses. The company also is capping life insurance for retirees at $10,000. According to some sources, the cuts are expected to affect 14,500 retirees and their spouses.
In a letter sent to the affected retirees, the company said: "Recent developments in the Medicare marketplace make it more practical and efficient for Medicare-eligible individuals to purchase medical coverage directly through a national carrier or one of the many companies who specialize in the Medicare market than for EMBARQ to provide this coverage."
A spokesperson for Embarq reiterated that statement in a interview.
"The bottom line is to stay competitive," said Tom Matthews, a regional medical relations manager for Embarq." He didn't elaborate.
Kaylor is one of the many retirees affected by the decision that Embarq representatives say will save the company $30 million.
The Embarq Operating Companies are telephone companies owned by Embarq that serve the regions in 18 states formerly served by Sprint, United Telecommunications, and Centel. The company has about 20,000 current employees.
Read the entire story, here...http://www.thepilot.com/stories/20071216/news/local/20071216benefitcuts.html
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