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American Coal cancels retiree health insurance

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GALATIA - Employees planning to retire from The American Coal Company's mine in Galatia will not receive medical benefits according to a letter sent out by the company.

The letter was sent out on Dec. 28 and stated that coverage for medical benefits of employees who retire after Dec. 31 would cease.

The letter from Human Resources Director Richard Wittmeyer was obtained by WSIL-TV 3, who broke the news on a Jan. 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 interests for the continuation of the Company as an ongoing business enterprise ?"

The letter also notes 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.

Mike Riley, corporate human resources director at American Coal, was listed as being able to answer questions about the decision, but attempts to reach him were unsuccessful.

codell.rodriguez@thesouthern.com

351-5804

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