HOUSTON--Halliburton Co. is seeking class action certification in an Aug. 16 court hearing for a lawsuit filed against several retired employees who have challenged a company decision to eliminate health insurance coverage for Medicare-eligible retirees.
The dispute arose when Houston-based Halliburton decided to amend the benefits package for former employees of its Dallas-based subsidiary DII Industries, formerly known as Dresser Industries Inc. In November 2003, amendments were made to the medical benefits of 3,200 Dresser retirees because they had richer medical benefits coverage than did other employees, a Halliburton spokeswoman said.
The amendments eliminate health insurance coverage for retirees over the age of 65 who are eligible for Medicare, effective Jan. 1, 2005, the spokeswoman said. The amendments also revise the prescription drug benefit for these retirees, although they would still have access to a prescription drug program toward which Halliburton would contribute $22 per month, she said.
Some Dresser retirees wrote to Halliburton demanding that the amendments be rescinded, though, arguing that the amendments are not permitted under the 1998 merger agreement between Dresser and Halliburton. The company denies that changes breach the merger agreement.
Halliburton filed the lawsuit to provide prompt resolution concerning the validity of the amendments so that, should the amendments be judged valid, the 3,200 employees would have adequate time to arrange for other medical coverage above what they receive through Medicare, the spokeswoman said. The lawsuit was filed Jan. 21 in the U.S. District Court for the Southern District of Texas. There is a court hearing scheduled for Aug. 16 to certify the class action.
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