Two-hundred-plus Piedmont Augusta and University Healthcare retirees threatened with a benefits cut lined up Thursday to sign on the dotted line.
“I have never had a lawsuit with 200-250 plaintiffs before, but it’s always something you can do,” said attorney Jack Long.
After Long and organizer Robert Taylor spoke and answered most of their questions, the group rose from the pews of a west Augusta church and formed a line to sign an employment contract with Long.
Tess Atkins, a notary public, said she’d never notarized so many documents in one sitting.
When Piedmont Health completed the acquisition of University Hospital last year, it informed retirees they would soon lose a supplemental Medicare policy, which pays the portion of a medical bill Medicare doesn’t pay enough to cover.
The benefit, which appeared on University Hospital employment documents for decades, guaranteed the policy for employees who retired with 30 years or more of service.
Losing it seemed like a slap in the face to many, who said it was one reason they stayed so long with University. They said cutting the benefit was a cheap shot given the retirement package paid to retiring CEO Jim Davis. That amounted to three times his annual salary, which was known in 2019 as $1.67 million.
Hospital officials did not return requests for comment Thursday.
The benefit remains in place for now, but Piedmont hasn’t guaranteed it will continue, said Taylor, a retired hospital CPA.
Piedmont was well aware of the underfunded liability when it bought the hospital, Taylor said.
An actuarial study done last year placed the benefit’s current annual cost at $1.1 million and its lifetime cost at $25-32 million, he said.
Long said a group such as the retirees often would join a class action lawsuit, where one plaintiff represents a class of affected people. In this case, the retirees can simply come together as individual plaintiffs in the lawsuit — if it becomes necessary.
“I would hope they would go ahead and just say ‘We’re going to pay the benefits,'” he said. “The fact that y’all are here and willing to go forward – (they) don’t want all these people mad at them.”
Long agreed to litigate the matter at no charge unless it is successful. The document retirees signed promised his law firm 25% of the recovered amount, or 33% if it’s successful at trial. Plaintiffs aren’t allowed to accept individual settlements with the hospital without the group’s approval.
The cut would impact plaintiffs differently depending on their age, health and employment status. Retired nurse Robin Petrey asked if Long could get an injunction to stop any cuts until the lawsuit concludes.
“We don’t trust (Piedmont) to not cancel things and then, three years from now when it’s finally resolved, it won’t help people who have already been affected and actually left this earth,” Petrey said.
Susan McCord is a staff writer with The Augusta Press. Reach her at susan@theaugustapress.com
