Rockefeller sends letter to President of Century Aluminum

[The Straight Story]

ROCKEFELLER SENDS LETTER TO PRESIDENT OF CENTURY ALUMINUM

Urges Reconsideration of Century's Plan to Eliminate Early Retiree Health Insurance Coverage for Workers


WASHINGTON, D.C.—Senator Jay Rockefeller, Chairman of the Senate Committee on Commerce, Science, and Transportationand of the Finance Subcommittee on Health Care, sent a letter to the President and CEO of Century Aluminum, urging reconsideration of their plan to eliminate early retiree health insurance coverage for workers under age 65 who have retired from the idled Ravenswood, West Virginia facility.

“These workers, some of whom have spent decades at the Ravenswood facility and sacrificed better wages during their working lives for the promise of retiree coverage, deserve better than to have this promise broken,” said Rockefeller. “Again, I would ask that Century Aluminum give serious consideration to continuing early retiree coverage for your workers in West Virginia, who have dedicated so much to your company through good times and bad. Standing by your workers during this time in their lives is simply the right thing to do.”

The full text of the letter is below:

Dear Mr. Kruger,

I was very concerned to hear the news that Century Aluminum plans to eliminate early retiree health insurance coverage for workers under age 65 who have retired from the idled Ravenswood, West Virginia smelter. This decision adds further insult to the injury caused last year when Century Aluminum decided to drop coverage for nearly 500 retirees over age 65. These workers, some of whom have spent decades at the company and sacrificed better wages during their working lives for the promise of retiree coverage, deserve better than to have this promise broken after a long career with Century Aluminum.

While I understand your efforts to reduce costs in a difficult economy, it is my hope that Century Aluminum will reconsider this decision, which will be devastating to these retirees. I am especially concerned about this decision given Century Aluminum's acceptance into the new Early Retiree Reinsurance Program (ERRP) that was created by the health reform law enacted in March 2010. As you know, this program provides $5 billion in financial assistance to employers and unions to help them maintain coverage for early retirees age 55 and older who are not yet eligible for Medicare. Specifically, the ERRP provides reimbursement for high-cost medical claims of early retirees and their families. Since October, companies have been able to submit claims to obtain reimbursement for 80 percent of health care claims in the $15,000 to $90,000 range. Savings can be used to reduce employer health care costs, provide premium relief to workers and families, or both. To date, sixteen West Virginia employers have been accepted into the program. I am extremely concerned that Century Aluminum is deciding to drop coverage for its early retirees despite this extra assistance from the federal government.

As I am sure you are aware, early retirees have an especially difficult time finding coverage on their own if it is not offered by their employers. These individuals are not yet eligible for Medicare, and they may have a pre-existing health condition that makes it difficult or impossible to buy private coverage on the individual market. For example, chronic conditions such as diabetes, high blood pressure, or heart disease need ongoing medical attention. Coverage interruptions for Century Aluminum's early retirees could leave them without coverage for a catastrophic illness or make their chronic conditions worse. Century Aluminum's business decision means that, without any other coverage, your early retirees could be forced to turn to safety-net care instead of relying on the benefits they were promised. As Chairman of the Senate Committee on Commerce, Science, and Transportation, I plan to conduct oversight on these issues and their impact on manufacturing and our economy, and I look forward to your participation.

Again, I would ask that Century Aluminum give serious consideration to continuing early retiree coverage for your workers in West Virginia, who have dedicated so much to your company through good times and bad. Standing by your workers during this time in their lives is simply the right thing to do.

I request a response to this letter no later than December 13, 2010. I look forward to hearing from you soon.

http://rockefeller.senate.gov/press/record.cfm?id=328916&

[saigon68]

1. Corporate Greed