Insurance dilemma at Lynch

Aug. 14--The Lynch City Council discussed an issue with employee insurance during a meeting on Tuesday.

Council member Bennie Massey questioned what the city planned to do about an employee, Chris Adams, who was in the hospital when the city canceled his insurance and now he is facing large medical bills.

"How are we going to settle this?" asked Massey. "The insurance wasn't actually canceled -- it just wasn't paid. We had an employee in the hospital -- lost his insurance -- the city is going to have to pick this up or do something cause we, the city, didn't pay it."

Adams, who was in attendance at the meeting, said he now can't get any insurance for six months because his insurance was terminated on May 31 instead of June 30 when the council actually voted to terminate.

"And, you all are still cutting premiums out of my check," Adams said. "I believed I had insurance and now I'm screwed. Now, at the end of the year on my income taxes I'm going to be penalized on my taxes for not having insurance."

City clerk Erica Eldridge said the city didn't have the money at the end of May to pay the insurance premiums and when she contacted the insurance company to ask for an extension she told them the insurance was going to be canceled at the end of June.

"They refused to accept a payment after receiving that information," said Eldridge. "I didn't know that would happen. The city just didn't have the money to pay. Technically, the city was still in a grace period, but because we chose not to renew, they chose to refuse payment."

Adams said he is now "sitting waiting to be put on his wife's insurance and he can't because he has to wait until open enrollment."

"I can't get insurance with anybody anywhere right now," said Adams.

Betty Hudack questioned how much the insurance payment would have been if it had been paid and Eldridge told her approximately $3,000.

"Now, we're going to have to pay out $10,000 or more for a hospital bill," added Massey.

Several in attendance asked Eldridge if she had documentation that the insurance company refused payment and she said she had what the lady told her on the phone.

"When I went to H&R Block last year they asked me if there was any time during the year that I didn't have insurance. They said if you don't have insurance at any point next year, which is this year, then you will have to pay over $1,000 out of your income tax. I'm not doing that for this city. That's kind of dirty."

Hudack said when the council voted on canceling the insurance they were unaware the premiums had not been paid up to that time.

"We're just going to have to bite the bullet, I guess," replied Massey

Adams said he has talked with an attorney and this issue is "not going to be swept under the rug."

"I don't want to go that route, but I have to go that route. This is my livelihood," said Adams. "I just had a mini stroke about a month ago. I don't know what is going to happen to me from one day to the next. I have to have insurance and now I can't get it because my money wasn't sent in and I was made to believe that I had insurance laying in the hospital. Now, I'm screwed. There goes my credit -- everything. I can't pay those bills."

Council member Winston Yeary suggested the city seek legal advice on this situation. Hudack asked Eldridge to pull all paperwork from the insurance company and bring it to the council. Adams said he will bring all his hospital bills to the council for a total amount due so the city will have an amount to look at.

"We were always late on that bill," said Eldridge. "I had no idea this would happen. It's like everything else if you don't have the money you just can't pay it."

Mayor John Adams said the city has struggled for the past 20-30 years to pay their bills.

"You just can't pay everything on time," said Mayor Adams.

All members agreed legal council needs to be contacted.

In other action:

--Held second reading of the city's electrical inspection ordinance;

-- Approved a tax ordinance setting the ad valorem tax rate at .0024 cents on each $100 assessed value of real property and personal property;

--Appointed a selection committee for the city's Coal Miner Appreciation event. Those chosen were council members Bennie Massey and Carl Collins; community members Barbara Tiabian, Butch Cozort and Bobby Goins. Council decided two living miners and two deceased miners will be chosen to be recognized;

--Mayor Adams told council members if and when another employee is hired for the maintenance department one of the requirements will be that they have a legal driver's license;

--Introduced a new police officer recently hired. Jackie Stewart is a Cumberland resident, having previously worked with the Cumberland Police Department and the Pikeville Police Department.

Reach Nola Sizemore at 606-573-4510 or on Twitter @Nola_hde

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