LAWSUITS NEWS & LEGAL INFORMATION
Racine, WI
Racine, WI: (Aug-17-07) Nearly 129 retired employees brought charges against the city over changes to their health benefits. The complaint, filed with the court in March 2006, alleges the city promised the retirees and their families insurance coverage for life, including payment of all premiums and reimbursement for Medicare "B" contributions. The change earned the retirees monthly bills between $13.52 and $33.81 for the insurance premiums, depending on their age and who was on the plan. The loss of the Medicare "B" reimbursement cost an additional $78.20 per person per month in 2005 and $88.50 per person per month in 2006. The city began requiring nonrepresented retirees to pay 5 percent of their health insurance premiums in January 2005, according to court and city records, and stopped reimbursing eligible retirees for Medicare "B" contributions.
The employees claimed that this was a breach of contract and sued the city. The plaintiffs claimed that the city never asked their consent to make the changes to the plan, and asked for a judgment declaring they have a vested right to lifetime coverage from the city and preventing the city from requiring these payments in the future. Additionally, they asked the court to force the city to repay them for premiums and Medicare coverage going back to January 2005. The city, in its defense, denied that this was a breach of contract, instead claiming it had the right to modify health benefits for the retirees, even without their consent. In a settlement reached, the city will have to pay close to $600,000, depending on the specifics of each person's coverage. [JOURNAL TIMES: CITY EMPLOYEE BENEFITS]
Published on Aug-20-07
The employees claimed that this was a breach of contract and sued the city. The plaintiffs claimed that the city never asked their consent to make the changes to the plan, and asked for a judgment declaring they have a vested right to lifetime coverage from the city and preventing the city from requiring these payments in the future. Additionally, they asked the court to force the city to repay them for premiums and Medicare coverage going back to January 2005. The city, in its defense, denied that this was a breach of contract, instead claiming it had the right to modify health benefits for the retirees, even without their consent. In a settlement reached, the city will have to pay close to $600,000, depending on the specifics of each person's coverage. [JOURNAL TIMES: CITY EMPLOYEE BENEFITS]
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