American Coal Cancels Retiree Health Insurance
Employees planning to retire from The American Coal Co.'s mine in Galatia, a coal company owned by Robert E. Murray, will not receive medical benefits according to a letter sent out by the company. According to The Southern, the letter was sent out on December 28 and stated that coverage for medical benefits of employees who retire after December 31 would cease.
The letter from Human Resources Director Richard Wittmeyer was obtained by WSIL-TV 3, who broke the news on a January 1 broadcast. The letter was sent out to employees and attributed the move to the "rising cost of healthcare and its effect on company sponsored healthcare plans" and said that "it is in the best news interests for the continuation of the company as an ongoing business enterprise."
The letter also noted that the medical plan has a provision that permits American Coal to "amend, modify or terminate benefits offered at any time." It also assures that the decision was made after other alternatives were considered.