MEDFORD, Ore. (AP) -- A judge has found the city of Medford in contempt of court for failing to provide health insurance for retired employees.
Jackson County Circuit Judge Mark Schiveley will fine the city $100 a day starting Nov. 1 if it doesn't provide the coverage, which the city estimates will cost about $1.8 million annually. In a ruling involving former Medford employee Joseph Bova, the judge said the city has resisted court orders from 2009 that retired city employees are entitled to "bridge" health insurance until they reach age 65.
A separate ruling by Schiveley requires the city to purchase an insurance plan to cover all employees and retirees.
In February, the Oregon Supreme Court ruled the city must provide health benefits to its retirees or prove that it is unable to do so. The Supreme Court found the retirees have constitutionally protected rights to health care coverage.
Doug Detling, the city's human resources director, said the city doesn't have the final numbers on the cost from its insurance carrier.
Nearly 100 of the city's 105 management employees have said they don't want any part of Bova's class-action suit, fearing it would increase health costs and extend benefits to retired workers.
The case is being watched by other municipalities throughout Oregon because they offer the same type of insurance and would have to provide similar coverage to retirees.
Published: Fri, Oct 29, 2010
