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Journal-News.com

AK Steel: Retirees given benefits deadline

MIDDLETOWN — A letter dated Saturday sent to AK Steel Corp. retirees regarding enrollment for health care benefits has spawned a flood of telephone calls to the president of Concerned Armco/AK Steel Retired Employees.

Those who called Michael Bailey had questions and concerns about their changed health care plan, which would require retirees to shoulder more costs, and an enrollment deadline nearly two weeks away.

The letter, apparently sent to about 4,600 retirees, says the company is conducting benefits enrollment for the coverage period of Oct. 1 to Dec. 31 and forms must be completed and returned to the AK Steel Corporation Retiree Assistance Center in an enclosed envelope by July 15.

"The envelope doesn't even include a stamp," Bailey said.

The letter further states failure to make a choice in health care plans prior to the close of the benefits enrollment period on Aug. 31 will result in cancellation of health care coverage for the period of Oct. 1 to Dec, 31. But the retiree would be eligible to re-enroll for healthcare for the 2007 plan year.

Faced with escalating health care costs and unable to settle a 4-month-old lockout, AK Steel Corp. said last month it will alter benefits so retirees will share more of the costs starting Oct. 1.

Currently, retirees once represented by Armco Employees Independent Federation do not pay for health insurance beyond office visit and prescription co-pays, AK said.

But if AK's plans move forward, that will change. According to an estimate AK provided, Medicare-eligible AEIF retirees could in January pay about $300 a month for two-party coverage in a "traditional" plan, or $200 a month in a Medicare Advantage Preferred Provider Organization plan.

AK's share of retiree health care monthly premiums will be capped Jan. 1, 2008. AEIF retirees will shoulder increases after that.

Until then, AEIF retirees younger than 65 will pay 10 percent of monthly health premiums and Medicare-eligible retirees will pay 50 percent of their plan's monthly premiums.

Bailey, a retiree and former AEIF president, said Sunday that he did not receive his letter in the mail Saturday and believes others also may not have.

He called the letter part of the company's "take or leave it attitude" with the retirees' healthcare plan and a "form of bondage."

"This has ruined their weekend. It is insensitive. We are celebrating freedom this weekend. Now retirees are worried about making a decision that is going to be costly," Bailey said.

He added a CARE meeting is scheduled for 10 a.m. Wednesday at the Veterans of Foreign Wars social center on Cole Road and more information about the benefits plan and the deadline will be available then.

"Just relax, don't have a knee-jerk reaction. We will have more information at Wednesday's meeting," Bailey said.

Brian Daley, AEIF president, said Sunday the union is asking retirees not to sign any new benefits or insurance documents until CARE received an opinion from attorneys about AK's change in the healthcare plan.

"It (the letter) is putting pressure on the retirees," Daley said. "Giving them two weeks or less to force one plan or another."

He added if AK was acting in good faith, they would have at least provided a training session to explain the options under the new plan.

The letter includes a phone number for people with questions, but Daley said it is usually just a recording. When dialed by the Journal Sunday afternoon, the recording said the AK Retiree Assistance Center was closed and to call back during regular hours from 9 a.m. to 3 p.m. on Mondays, Wednesdays and Fridays.

Alan McCoy, AK vice president of government and public relations, said the letter was sent because "it is what we need to do to get people enrolled for the Oct. 1 deadline."

About 70 percent of retirees companywide already pay some part of their health benefits, AK said.

Contact this reporter at (513) 705-2841 or lpack@coxohio.com.