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PSC Metals eliminating employee health plan

Keywords: Tags  metals recycler, PSC Metals, Bob Brewer, health insurance, Affordable Care Act, Institute of Scrap Recycling Industries, Lisa Gordon


PITTSBURGH — PSC Metals Inc. intends to discontinue its health insurance policy for all employees, the first known company in the metals industry to do so.

The move means that some 1,000 workers at the Mayfield Heights, Ohio-based metals recycler and broker will need to enroll through the Affordable Care Act (ACA) or seek insurance through an exchange.

Chief executive officer Bob Brewer confirmed the decision, but declined to comment on the matter. Employees at the company also declined to comment.

Because PSC Metals employs more than 50 people, it could face a government penalty of $2,000 per worker, which is less than the cost of most insurance premiums. An Ohio Valley recycler said it costs $7,200 annually to insure an individual and $20,000 per year to insure a family.

A source close to PSC Metals reported being told that many of the company’s workers might be eligible for government insurance subsidies because of their income level.

No other metal recyclers could be located that have made a similar decision to terminate health care insurance.

Industry reaction to the PSC decision has been mixed, ranging from disbelief to concerns that other companies might follow suit.

"This is sending a message that PSC does not care about its workers. The first thing I did when I became successful was offer my employees good health care," said the owner of a recycling yard that services the Ohio Valley.

Some metal recycling employees fear that it could have a ripple effect. "Times are tough, and there are not a lot of jobs out there so they may be forced to live with it. If their workers don’t bail out, then other companies could do the same," a source in Birmingham, Ala., said. "It is cheaper to pay the penalty than pay the premiums."

An Institute of Scrap Recycling Industries spokesman did not return a call seeking comment.


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Comments

  • Nov 21, 2013

    They do have every right as a company to eliminate health coverage, however maybe they should consider how this will affect hundreds of employees. PSC requires you to have health insurance to maintain a job there without the opportunity to opt out. Not only do they require you to have insurance but you MUST buy it from the insurance company that THEY own. I understand the idea of a business and the need to make money, but the only people they are hurting are the ones who do all the dirty work to make their business so successful. It’s sad to say that “these employees can sign up for the affordable health care because of the income they make.” That’s exactly the problem, the income they make. Whether you have been a laborer for 30 years or 5 the pay is nothing to brag home about. These workers have a hard enough time affording what they did have to pay every month due to a recent mandatory increase on coverage. What about the families they support, any health issues they have, these are all factors that I’m sure the ones making billions never even consider. Why would they? So as you sit back and enjoy your lavish life, which you fully deserve, remember the little guys. The ones who kill themselves making pennies compared to you. Why don’t you shake their hands, thank them for their hard work and endurance for making you who you are today, as you kindly explain that you will no longer be providing them with the one and only “benefit” of working for your foolish company.


  • Nov 20, 2013

    For whatever reason this country long ago decided that universal health care for its citizens was not a priority and somehow companies began the process of "corporate" socialized medicine. PSC has every right to withdraw coverage, however it sends a tremendously negative commentary about its lack of responsibility to the well being of its employees. Who on earth would want to work at a place that sends out this kind of message to its employees?


  • Nov 19, 2013

    Way to go!


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