Maintaining Critically Important Health Benefits--by Ending Them
December 27, 2007
U.S. Ruling Backs Benefit Cut at 65 in Retiree Plans
By ROBERT PEAR WASHINGTON — The Equal Employment Opportunity Commission said Wednesday that employers could reduce or eliminate health benefits for retirees when they turn 65 and become eligible for Medicare. The policy, set forth in a new regulation, allows employers to establish two classes of retirees, with more comprehensive benefits for those under 65 and more limited benefits — or none at all — for those older. More than 10 million retirees rely on employer-sponsored health plans as a primary source of coverage or as a supplement to Medicare, and Naomi C. Earp, the commission’s chairwoman, said, “This rule will help employers continue to voluntarily provide and maintain these critically important health benefits.” . . . In general, the commission observed, employers are not required by federal law to provide health benefits to either active or retired workers. Dianna B. Johnston, a lawyer for the commissio…