Embarq Locals Protest Termination of Retiree Health Care

Embarq members and retirees in six states will hold demonstrations this Saturday to protest the company's announcement that it will terminate retiree health benefits for Medicare-eligible pensioners.

The cuts average more than $2,000 per year for every retiree and dependent affected, and, "They will have an even greater impact on families with acute medical problems who rely on expensive prescriptions," said Telecommunications Vice President Jimmy Gurganus. "This will be devastating to many people, especially for longer term retirees who haven't seen a pension increase in years and are struggling on meager fixed incomes."

Embarq, Sprint's former local phone operation, which was spun off last year, announced it would drop its $500 annual subsidy for Medicare premiums as well as supplemental coverage that pays partial medical costs when Medicare payments are below 80 percent of treatment expenses. Embarq also is capping life insurance for retirees at $10,000, a substantial cut for many.

At demonstrations in North Carolina, Ohio, Pennsylvania, Florida, New Jersey and Oregon on Aug. 25, Embarq retirees – joined by local politicians and labor leaders in many locations – are set to tell the news media how the cutbacks would cripple their incomes and keep them from being able to afford needed treatments and drugs.

Many echoed Sandra Muntis of Elida, Ohio, who wrote to her local describing the situation of her husband, who suffers from multiple sclerosis, and her own struggle with diabetes and ulcers.  Without supplemental health care from Embarq, "we could not afford procedures requested by physicians to keep us in good health," such as colonoscopies, tests for prostate cancer and others, she said.

About 14,500 retirees and dependents, both management and union, would be affected. Embarq says it will save $30 million a year from the cuts.

"We all understand that medical costs are soaring, but abandoning commitments to our most vulnerable seniors is not the answer," Gurganus stated. "We invite Embarq to join us in pushing for a national solution to this national problem rather than joining the low-road employers that are adding to the ranks of Americans who can't afford good health care."