Hundreds of striking workers at Butler Hospital, on Providence’s East Side, received notices that their health benefits will be terminated at the end of the month.
The psychiatric hospital operated by Care New England said in a May 16 letter to nurses, mental health workers and other staff who are members of the SEIU1199 New England that since they are “not actively at work,” they will be ineligible for hospital-provided benefits unless they elect to continue coverage through COBRA.
The cost of COBRA plans are typically higher than regular company coverage – often $400 to $700 a month – because the individual is responsible for the full premium amount, without an employer’s contribution, plus an administrative fee.
The hospital’s decision to cancel striking workers’ health insurance is legal, but “it’s just a scummy move,” especially for a health care employer, Marc B. Gursky, a labor lawyer who represents the SEIU1199NE in Rhode Island, told The Public’s Radio. “People rely on their health insurance, and not only them, it’s their family, it’s their children.’’
Brooke Huminski, a clinical social worker in Butler’s Inpatient Assessment Center, said that her health benefits help pay for the life-saving medication as well as IVF treatments.
“Our family will likely have to stop the IVF process without insurance’’ because they won’t be able to afford the cost of the medications, she said in a statement. “I never thought it would get to this place.”
Butler has also notified striking workers they will receive their last paycheck on May 23.
Mary E. Marran, Butler’s president and chief operating officer, said in a statement that the striking employees’ benefits will expire on June 1 “in accordance with federal law and benefit plan rules…due to the indefinite strike.” Some benefits, such as life insurance, she said, have already ended “due to eligibility rules tied to active employment.”
“We have worked diligently to reach a fair and sustainable agreement, offering significant wage increases and improvements in workplace safety,’’ Marran said in the statement. “Unfortunately, SEIU 1199 NE ended negotiations on May 7 and has not yet returned to the bargaining table, despite our continued willingness to resume talks.”
The pending cancellation of their health benefits comes after roughly 800 unionized employees walked off their jobs last Thursday morning, as the two sides hit an impasse in negotiations over wages, benefits and workplace safety issues.
Butler spent $3.2 million to hire replacement staff through a temporary agency to keep the hospital operating during the strike. The hospital did not respond to questions about how long the contracts for replacement workers are expected to run.
The union’s contract with Butler expired March 31. The SEIU1199 NE represents roughly 5,000 workers in Rhode Island, including more than 800 staff at Butler.
