In 2011, Lancaster General Health will discontinue health insurance benefits for all part-time employees working less than 20 hours a week. Furthermore, effective immediately, the county’s largest employer will no longer offer such coverage to future part-time hires working less than 20 hours. According to LGH Public Relations Director John Lines, the decision will affect 3% of the not-for-profit’s 7,000 employees, which approximately totals 210 working individuals.
NewsLanc was notified of this development late last week through the comment of a frustrated reader:
“Lancaster General Hospital just sent out a letter telling many of its part-time employees that they are getting kicked off of the hospitals health insurance plan at the end of next year.
“For all the surplus money they have and how much they spend on fountains and statues, they WON’T provide health coverage to some of their staff.
“The letter came as a complete surprise to people. Nobody asked the affected employees what taking away the insurance would do to them. The human factor was never considered.
“Executives and managers seemed annoyed at having to hear what this decision will do the families victimized by this shameless greed. The attitude displayed to the staff is basically ‘Let Them Eat Cake.’”
The “surplus money” mentioned by this reader amounts to $113 million dollars for the last fiscal year.
To verify the reader’s report, NewsLanc sent an inquiry to Lines, which included the following questions:
1. What prompted this decision?
2. In light of LGH’s $113 million surplus, why is the company cutting back on employee benefits?
3. How much budgetary savings does LGH expect to earn by eliminating this expense?
Lines’ response was not exhaustive, but did touch on the basis for LGH’s decision. According to Lines, “Each year, we compare the benefit practices of regional and national healthcare organizations. This year’s results showed it is highly unusual to offer health benefits to employees working less than 20 hours a week.”
