US ruling supports benefit cut for retirees
Patient Access Weekly Advisor, New York Times, January 2, 2008
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The Equal Employment Opportunity Commission announced last week that employers could decrease or eliminate health benefits for retirees when they turn 65 and become eligible for Medicare, the New York Times reports.
Set forth in a new regulation, the policy allows employers to establish two groups of retirees, those under 65 with more comprehensive benefits and more limited benefits or none at all for those older than 65.
Under the new rule, employers may choose to provide retiree health benefits "only to those retirees who are not yet eligible for Medicare." The rule also says that retiree health benefits can be "altered, reduced or eliminated" when a retiree becomes eligible for Medicare, according to the report in the New York Times.
To read the story in the New York Times, click here.
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