Opinion of Trustees
Resolution of Dispute
Case No. 84-445
Page 1
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OPINION OF TRUSTEES
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In Re
Complainant: Employee
Respondent: Employer
ROD Case No: 84-445 – August 25, 1987
Board of Trustees: Joseph P. Connors, Sr., Chairman; Paul R. Dean, Trustee; William B.
William, Trustee; William Miller, Trustee; Donald E. Pierce, Jr., Trustee.
Pursuant to Article IX of the United Mine Workers of America (“UMWA”) 1950 Benefit Plan
and Trust, and under the authority of an exemption granted by the United States Department of
Labor, the Trustees have reviewed the facts and circumstances of this dispute concerning the
provision of health benefits coverage under the terms of the Employer Benefit Plan.
Background Facts
The Complainant was employed by the Respondent in a classified position from August 19, 1985
until July 13, 1987, when he was laid off. The Complainant’s last day of work for the Respondent
was June 26, 1987. The Respondent is signatory to the National Bituminous Coal Wage
Agreement (“Wage Agreement”) of 1984.
The Respondent provided health benefits coverage for the Complainant through the Bituminous
Industry Trust/Business Insurance Trust (“BIT”) and California Life Insurance until April 30,
1987, when the BIT was terminated. Due to insolvency, the BIT and California Life Insurance
have ceased paying health benefits claims for services rendered prior to April 30, 1987. The
Complainant has submitted copies of unpaid bills for medical services rendered in October 1986.
The Complainant asks whether the Respondent is responsible for payment of the October 1986
medical bills that are unpaid due to the insolvency of BIT and California Life Insurance.
The Complainant has stated that the Respondent has provided health benefits coverage through a
different insurance carrier since April 30, 1987.
Dispute
Whether the Respondent is responsible for the provision of health benefits for the Complainant
during his active employment under the terms of the Employer Benefit Plan.
Positions of the Parties
Opinion of Trustees
Resolution of Dispute
Case No. 84-445
Page 2
Position of the Complainant: The Respondent is responsible for payment of the covered medical
charges incurred by the Complainant during his employment with the Respondent.
Position of the Respondent: The Respondent has not responded to repeated correspondence from
Funds staff regarding its position in this dispute.
Pertinent Provisions
Article XX Section (c)(3)(i) of the National Bituminous Coal Wage Agreement of 1984 provides
in pertinent part:
(c) 1974 Plans and Trusts
(3)(i) Each signatory Employer shall establish and maintain an
Employee benefit plan to provide, implemented through an
insurance carrier(s), health and other non-pension benefits for its
Employees covered by this Agreement as well as pensioners, under
the 1974 Pension Plan and Trust, whose last signatory classified
employment was with such Employer. The benefits provided by
the Employer to its eligible Participants pursuant to such plans
shall be guaranteed during the term of this Agreement by that
Employer at levels set forth in such plans.
Article I (1), (2) and (4) of the Employer Benefit Plan provide:
Article I – Definitions
The following terms shall have the meanings herein set forth:
(1) “Employer” means (Employer’s Name).
(2) “Wage Agreement” means the National Bituminous Coal Wage
Agreement of 1984, as amended from time to time and any successor
agreement.
(4) “Employee” shall mean a person working in a classified job for the
Employer, eligible to receive benefits hereunder.
Article II A. (4) of the Employer Benefit Plan provides:
Article II – Eligibility
The persons eligible to receive the health benefits pursuant to Article III are as follows:
A. Active Employees
Opinion of Trustees
Resolution of Dispute
Case No. 84-445
Page 3
(4) A new Employee will be eligible for health benefits from the first
day worked with the Employer.
Discussion
Article XX Section (c)(3)(i) of the 1984 Wage Agreement requires an Employer to provide an
Employer Benefit Plan… “implemented through an insurance carrier(s), [for] health and other
non-pension benefits…” It further requires that benefits provided by the Employer to its eligible
Participants pursuant to such plans shall be guaranteed during the term of this Agreement by that
Employer at levels set forth in such plans. Although the Respondent in the instant case
implemented its Employer Benefit Plan until April 30, 1987 through an employer trust fund and
insurance carrier which subsequently became insolvent, such event does not relieve the
Respondent of its primary obligation to provide benefits pursuant to the Wage Agreement.
Inasmuch as the Complainant was eligible for health benefits coverage from the Respondent at
the time his outstanding medical charges were incurred, the Respondent is responsible for
payment of those charges under the terms of the Employer Benefit Plan.
Opinion of the Trustees
The Respondent is responsible for payment of the covered medical charges incurred by the
Complainant during his eligibility for health benefits coverage as an Employee under the terms
of the Wage Agreement and the Employer Benefit Plan.
