A class action lawsuit filed by more than 200 Piedmont Healthcare retirees moves forward after a federal judge declined to dismiss a key part of their case.
The long-running dispute stems from Piedmont’s 2022 merger with University Hospital. The retirees contend they were promised if they worked 30 continuous years they were guaranteed supplemental Medicare for life.
But since the merger, the retirees believe Piedmont is trying to end the benefit. They are asking the court for clarity and an order to continue it.
Now numbering about 215, the plaintiffs hired before 2005 say they were repeatedly assured they would receive the supplemental “Medigap” coverage for life if they worked 30 years. The benefit was presented in writing and verbally by hospital management and was considered a “hidden paycheck” which encouraged them to stay until they retired, they contend.
Early in 2023 Piedmont sent a letter stating it was not obligated to provide the coverage, but would continue to do so “at this time.” This created “significant uncertainty” among the retirees, who numbered about 170 when they filed suit in Richmond County Superior Court in March 2023.
Represented by attorney Jack Long, the retirees fought Piedmont’s effort to remove the case to federal court but are now arguing there that the benefit is vested and protected under the federal Employee Retirement Income Security Act.
Chief U.S. District Judge J. Randal Hall issued a ruling Sept. 25 dismissing two of the plaintiffs’ three claims, but left the one that could force Piedmont to provide the benefit under ERISA.
Piedmont argued plan documents included no explicit statement the benefits were guaranteed for life. But the court found the absence of that language at that stage in the case did not end the inquiry. Hall ruled it should continue, with discovery and potential summary judgment proceedings coming next.
Lead plaintiff Robert M. Taylor III said everything about how the plan was handled indicated it was a lifetime benefit, while Piedmont is pressing on that it was not.
Due to the age of the plaintiffs, the group loses members periodically but it also continues to gain them as more employees retire, he said.
A 2 p.m. meeting is planned Oct. 30 at Pine View Baptist Church to update members about the case and invite others to join.
