Benefits end for locked-out Steelworkers
COBRA program reaches 18-month limit

Hannelore Sudermann - Staff writer

Today marks the end of extended medical benefits for locked-out Kaiser Steelworkers.

When the workers first went on strike, they had the option to buy health insurance benefits under COBRA, a federal law that guarantees workers can pay for their benefits for 18 months after they leave their jobs. A large number of the 2,100 Kaiser Steelworkers in Spokane took part, though many have since dropped the program for cheaper alternatives.

"We knew all along it was an 18-month extension," said Larry Strom, a Steelworker from the Mead plant and vice president of the union local. "But there's not all that many folks that paid for their COBRA 18 months anyway."

According to Kaiser officials, only about 200 out of the Steelworkers who once worked at Spokane's two plants are still using the COBRA benefits program.

Strom, who was paying $168-a-month to COBRA to cover just himself, found a less expensive option a few months ago.

The company sent out notices to remind the remaining people on COBRA that their benefits were expiring. "We've tried to work to make sure the employees understand what alternatives they have now that this COBRA period is over," said Jeremy Sherman, lead negotiator for Kaiser Aluminum.

The Steelworkers' national office has already been working on finding benefits for the 400 workers nationwide who are losing their COBRA support.

"In Washington, we have the Washington State Health Insurance Pool or the Washington State Basic Health Insurance Plan," said Jim Woodward, a spokesman for the union. "We should be in pretty good shape."

Kaiser and the Union are scheduled to meet Wednesday and Thursday in Chicago to continue negotiations.