Embarq retiree lawsuit set to proceed

A U.S. District Court Judge in Kansas said she would allow a class action lawsuit filed on behalf of Embarq retirees over the elimination of healthcare benefits to proceed. This issue, revolving around $300 million in health insurance benefits, first came to light more than a year ago, when the company announced it would no longer provide health insurance or subsidies for Medicare premiums after retirees become eligible for Medicare. Many retirees said the move was particularly annoying because Embarq had dangled ongoing healthcare benefits as encouragement to accept early retirement offers. The decision to drop coverage will affect about 10,000 of the company's 14,500 retirees. Embarq of course now faces a pending acquisition by CenturyTel.

For more:
- The Kansas City Star has this report [1]

Related articles
Embarq retirees voice their displeasure in August 2007 [2]
Embarq rejected a higher buyout bid to accept CenturyTel's [3]