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EEOC Issues Retiree Health Rule

Published by on December 31, 2007

The U.S. Equal Employment Opportunity Commission announced the release of new regulations regarding retiree health benefits on December 26, 2007.  The rule allows employers who provide retiree health benefits to continue the practice of coordinating those benefits with Medicare, without ensuring that Medicare eligible retirees are receiving the same benefits as younger retirees. The EEOC […]

The U.S. Equal Employment Opportunity Commission announced the release of new regulations regarding retiree health benefits on December 26, 2007.  The rule allows employers who provide retiree health benefits to continue the practice of coordinating those benefits with Medicare, without ensuring that Medicare eligible retirees are receiving the same benefits as younger retirees.

The EEOC explained the need for the rule as follows:  “The rule was needed because in 2000, in Erie County Retirees Association v. County of Erie, 220 F.3d 193 (3d Cir. 2000), a federal court ruled that if an employer provides retiree health benefits, the ADEA requires that the health insurance benefits received by Medicare-eligible retirees be the same, or cost the same, as the health insurance benefits received by younger retirees.”  The new regulations can be found here, along with a Q&A page.  Read the New York Times article on the regulations here.

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