Gov. Jim Justice, whose family owns The Greenbrier Hotel Corp., promised employees at the resort won’t go without health insurance.
“There is no way that the great union employees at The Greenbrier are going to go without insurance. There is no possible way,” Justice said in a statewide administration briefing in response to a question by WCHS television reporter Bob Aaron.
“And I’ll promise you to the good lord above that insurance payments have been made and were being made on a regular basis just like we’ve done in the past in many ways.” However, in response to a MetroNews request for clarification after the governor’s comments, lawyers representing the Amalgamated National Health Fund confirmed that delinquent contributions stated in an Aug. 16 memorandum are still correctly stated.
Attorneys for the Health Fund informed employees this week that they are at risk of losing coverage because The Greenbrier Hotel Corp. fell four months and millions of dollars behind on payments. The Health Fund says the owners are delinquent on $2.4 million in health premium contributions, with another $1.2 million in premiums soon due. The due date for payment is Tuesday.
Those are the numbers that Ronald Richman, an attorney representing the Health Fund told MetroNews are correct as of Thursday afternoon.
The insurance company alleged The Greenbrier collected premiums from employees but did not pass the money along. The health insurance payments collected from employees of The Greenbrier but not remitted to their insurance company total $612,000, according to Peter Bostic of the Greenbrier Council of Labor Unions.
“The Greenbrier’s delinquency has put our members’ health care benefits in severe jeopardy and is morally and legally wrong,” Bostic stated earlier this week. “Our members have met their obligation by working hard every day and paying their portion to The Greenbrier. The Greenbrier has neglected its obligation to its employees.”
Justice addressed the insurance matter on the same day The Greenbrier Hotel Corp. announced a deal holding off a foreclosure sale of key pieces of the resort, including the main hotel building. Under the agreement, Beltway Capital will receive a specific amount to be paid in full by Oct. 24, according to a statement distributed by the Justices.
Justice discussed those matters when asked specifically during the reporter question-and-answer portion of his regular administration briefing.
Justice described his family’s history of financial involvement at The Greenbrier, characterizing it as supportive of workers, and then said, “What if we absolutely just threw up our hands, what would have happened to those employees? I mean, it’s great to have health insurance, but then if you don’t have a job it would be pretty daggone tough, wouldn’t it?” He continued by saying, “I promise you with all in me, we will not miss one step with regard to people’s health insurance and we’ll move on down the road.”
State Senate Finance Chairman Eric Tarr, R-Putnam, is a business owner and discussed the health insurance matter with WMOV Radio, which covers the mid-Ohio Valley.
“The health insurance stuff, that one grabs everybody by the heart,” Tarr said, “especially when you withhold part of the employee’s paycheck in order to pay for their health insurance. That’s a payment that you’re actually giving to employees for work they’ve done for you. So that should automatically be passed through to the health insurance company. In my experience, I’ve been very blessed to not have to go out and tell my employees that we’re going to be so short that we’re not going to be able to make payroll or meet their health insurance.” He concluded, “It’s disheartening to see this coming from the governor of our state.”
The state Democratic Party this week pushed for Justice to abandon his bid for U.S. Senate over the problem with health insurance for employees. “Because of his negligence, hundreds of workers and their families may lose their health care coverage,” said state Democratic Party Chairman Mike Pushkin, who is also a state delegate.
Huntington Mayor Steve Williams, a Democratic candidate for governor, put out a statement calling on his opponent, current Attorney General Patrick Morrisey, to investigate any “fraud, waste, abuse, and corruption” in Justice’s business practices.
Williams referred to additional financial problems for Justice businesses such as liens on sales taxes that were collected from customers at The Greenbrier but not remitted to the state Tax Department. Greenbrier County records show $2,752,907 still owed.
“We now face the shocking revelation that the governor’s business interests have apparently diverted funds — collected from employees and patrons through health insurance contributions and sales tax revenue — away from their intended purposes. This is a serious issue that not only violates the law but also betrays the public trust.
In response to a MetroNews question on Thursday about Justice debts, a spokesperson for the attorney general said very little comment could be provided and that the office’s authority is narrow.
“Our office historically does not comment on potential investigative matters based on media reports,” said John Mangalonzo, spokesman for the Attorney General’s Office.
“Furthermore, in West Virginia, the attorney general has very limited authority to independently bring legal action under the purview of other state agencies unless the authority is delegated to the AG’s Office by the legislature, governor, or relevant agency.”
