St. Luke's Cornwall Hospital refuses to accept its own employees' health insurance

[Geppetto 31]

St. Luke's Cornwall Hospital refuses to accept its own employees' health insurance

By Christian Livermore

Times Herald-Record

July 08, 2008

In what hospital officials say is a financial decision but union members chalk up to spite, St. Luke's Cornwall Hospital has stopped accepting its own employees' health insurance...

http://www.recordonline.com/apps/pbcs.dll/...8/BIZ/807080309

[Guest alsfirefighter]

Wow. That really doesn't make any sense to me what so ever. I feel for the employees. You think the hospital would work with the union to hold off until a new insurance could be found and agreed upon or go through the process to change it so they can use the hospital they work at. How odd and ridiculous is that.

[jack10562 414]

It sounds like a breach of the 2004 union contract / medical benefits package. Just because the insurer is slow to pay claims, they can't unilaterally decline to provide coverage while under the terms of the contract.

[jps385 0]

It sounds like a breach of the 2004 union contract / medical benefits package. Just because the insurer is slow to pay claims, they can't unilaterally decline to provide coverage while under the terms of the contract.

The two have nothing to do with one another, the union contract calls for insurance X to be provided, the hospitals contracting with a given insurance company is completely separate. Anyone with Blue cross can attest to the fact that hospitals drop their contracts with providers (or at least threaten to) all the time. It an annual event that I get a letter saying that stellaris won't accept BC after 4/30, then they reach an agreement.

[gamewell45 258]

It sounds like a breach of the 2004 union contract / medical benefits package. Just because the insurer is slow to pay claims, they can't unilaterally decline to provide coverage while under the terms of the contract.

I think, if during negotiations, the company had knowledge of the issues they now claim were responsible for no longer accepting coverage and didn't make the union aware of their concerns and possible ramifications thereof, then at worst case scenario, there is a violation of the spirit of the labor agreement and quite possible a violation of failing to bargain in good faith. Should make an interesting case for the labor attorney's if the union decides to ajudicate it.