GNP retirees try to protect benefits Meeting called for Jan. 29 to assess possible loss of health insurance

MILLINOCKET – Members of the Katahdin Area Retirees Association are taking steps to protect their members from losing their company-paid health insurance as the result of Great Northern Paper Inc.’s bankruptcy.

The association will hold a meeting at 2 p.m. Wednesday, Jan. 29, at the VFW hall in Millinocket.

John DiCentes said an attorney will attend to become familiar with retirees’ concerns in the event the group is forced to fight to keep health care benefits.

“This is a shock to all of us,” he said. “We left this place with the understanding that what we had for benefits at the time – health insurance, life insurance and a prescription card – would be with us for the rest of our lives. It is devastating.”

DiCentes said workers had given up pay increases through the decades to provide this benefit. “Our money should be in the bank,” he said. “Someone should be asking, ‘What happened to this money? Where is the money?'”

DiCentes said when Bowater sold Great Northern to Inexcon of Maine in 1999, it did not give retirees any official notice about their health care being transferred to the new owners of GNP. He said many of the hundreds of people who retired in the last five years did so just to retain health care insurance.

He said he asked Great Northern officials for a copy of the agreement between Bowater and Inexcon regarding the pension and health care benefits, but was told he would have to hire a lawyer to obtain it.

DiCentes said many retirees and workers were confused about health care insurance coverage and coverage for prescriptions.

On Monday, some retirees received letters from HealthScope, a company that administers third-party claims for Great Northern’s self-insured health care plan.

“Claims processed by HealthScope Benefits during the week of Nov. 22, 2002, to the present are presently being held because Great Northern Paper has not provided the funds necessary to pay these claims,” the letter stated. “At this time, it is unknown to HealthScope Benefits whether Great Northern Paper is able to provide funding for claims submitted between Nov. 22, 2002, and Jan. 9. In addition, HealthScope Benefits has not to date received specific instructions from Great Northern Paper regarding the payment of claims submitted on and after Jan. 9.”

In the letter, HealthScope said that any questions about GNP’s plans for continuing medical benefits and funding of claims should be directed to the paper company’s Human Resource Department at 723-5131, or the company’s attorneys, Hanify & King, One Beacon Street, 21st Floor, Boston, MA 02108 or call (617) 123-0100.

Marie Vienneau, the chief executive officer of Millinocket Regional Hospital, said the informational letter from HealthScope Benefits did not change the fact that people are covered by health insurance until Feb. 4.

She said the bankruptcy judge ordered money to be set aside for insurance claims from Jan. 9 to Feb. 4.

Vienneau said employees and retirees are still covered under the “in-network” contract, which means they will be held harmless if the claims are not paid by the paper company. “If they went to an in-network provider, that provider cannot come back on them and request that they make payment,” she said. Essentially it means medical providers could get left with no reimbursement for their services if Great Northern does not pay.

The Millinocket hospital plans to hold a public informational meeting about Medigap insurance, a secondary insurance to Medicare, and how to access low-cost prescriptions on Feb.7 at the Katahdin Higher Education Center in East Millinocket.

Meanwhile, Ray Cote Sr., 47, of East Millinocket, who retired in 1995 with a disability, said he is very concerned about losing his health-care insurance.

“I feel the unions will not represent the retirees, but will represent themselves,” he said. Cote said the unions legally can not negotiate for retirees, but they should not be able to negotiate against the retirees either. “What we received under a contract should not be pulled out from underneath you while you are retired,” he said. “I fear the retirees will be sold out.”

Cote said he was upset about an incident last week when he was told by two officials of Local 12 in Millinocket that he was not welcome and could not attend a union meeting because he was not an active member. He said it was a personal grudge against him and said his former union local was not representing retirees like it should.

John Davis, president of Local 12, said a former member might have received some misinformation, which was being corrected internally. Davis said the local’s informational meetings are open for everyone to come and get information. He said the unions could not legally negotiate for retired members.

Meanwhile, the Katahdin Area Retirees Association is looking for volunteers and for donations to hire an attorney. For more information, contact 723-4054.