Capital BlueCross said today it has paid off the medical debts of all the laid off workers of Turbine Airfoil Design in Harrisburg.
“These former TAD employees have suffered a great deal with the loss of their jobs and benefits. Now, they no longer need to worry about unpaid claims that resulted from these circumstances that were beyond their control,” Capital CEO Bill Lehr said in a news release.
Last year, TAD workers received five months’ of medical bills, with some receiving bills totaling more than $70,000. It turned out TAD had failed to make full premium payments to Capital beginning in October 2008. Capital tried to work with TAD, but in March 2009, the Susquehanna Township-based insurer pulled the plug, canceling the coverage retroactively until October.
TAD employees were enraged at TAD and Capital, which had allowed their benefits cards to remain valid, and told both TAD employees and their doctors and hospitals that they had coverage.
But following an Oct. 11, 2009, story in The Patriot-News, Lehr cited nonprofit Capital’s community mission and announced it would pay the bills. Capital spent nearly three months meeting with TAD workers, negotiating with providers and paying the bills.
Capital wouldn’t reveal the total of the bills. Some have estimated the bills totaled more than $350,000. About 50 TAD employees were affected.
TAD, which made parts used in airplane engines, ceased operations last summer, citing the recession and tight credit market.
Hank Timmons, a former TAD worker who also was the union president, said today he is pleased with the way Capital has handled the situation once it decided to pay the bills. “It’s a shame we had to go through something like this, but I feel really relieved knowing my bills are paid,” said Ed Herb, 60, of Halifax, a former TAD electrician.
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