U.S. Equal Employment Opportunity Commission
April 22, 2004
EEOC Approves Proposal to Exempt Retiree Health Plans from Age Discrimination in Employment Act
During a public meeting today, the U.S. Equal Employment Opportunity Commission (EEOC) voted to approve a proposed final rule that would permit employers, under the Age Discrimination in Employment Act (ADEA), to lawfully coordinate retiree health benefit plans with eligibility for Medicare or a comparable state-sponsored health benefit. This common and long-standing employer practice was called into question in 2000, when the U.S. Court of Appeals for the Third Circuit (Erie County Retirees Association v. County of Erie) held that the federal statute requires employers to assure that pre- and post- Medicare eligible retirees receive health benefits of equal type and value.
http://www.eeoc.gov/press/4-22-04a.html
The New York Times
April 23, 2004
Commission to Allow Insurance Cuts for Retired Employees
By Robert Pear
The Equal Employment Opportunity Commission voted Thursday to allow employers to reduce or eliminate health benefits for retirees when they become eligible for Medicare at age 65.
The agency approved a final rule saying that such cuts do not violate the civil rights law banning age discrimination.
“This rule will allow employers to reduce or eliminate retiree health benefits for anyone over the age of 65,” (Michele Pollak, a lawyer at AARP) said. “More than 12 million Medicare beneficiaries currently receive retiree health benefits from employers and could potentially be affected.”
Alfred Campos, a lobbyist for the National Education Association, praised the rule, saying, “It will encourage school districts to continue providing health insurance to retired teachers under 65.”
http://www.nytimes.com/2004/04/23/politics/23RETI.html?hp
Comment: Relaxing the age discrimination rules for retirement health plans threatens programs that expand benefits for retirees on Medicare. On the other hand, relaxation of the rules provides financial relief for employers who provide benefits to retired employees not yet eligible for Medicare, by eliminating the age discrimination rules once they are eligible for Medicare. Are we really reduced to choices in deciding who gets the shaft?
What we do need is better benefits for Medicare beneficiaries, and for everyone else as well. The 15.5% of our GDP that we are spending on health care would fund comprehensive benefits for everyone. Instead of moving backwards by enabling age discrimination in health care, let’s move forward by adopting an equitable, comprehensive program for everyone.
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