Supreme Court: Employers can coordinate retiree benefits with Medicare

Monday, March 24, 2008

Supreme Court: Employers can coordinate retiree benefits with Medicare

Associated Press

WASHINGTON -- The Supreme Court has upheld a federal policy that allows employers to reduce their health insurance expenses for retired workers once they turn 65 and qualify for Medicare.

The justices turned down an appeal by the 35-million-member AARP to undo a rule that essentially allows employers to treat retirees differently depending on their age.

The rules were put into place by the federal Equal Employment Opportunity Commission, with the support of labor unions and other groups. They worried that employers would greatly reduce or eliminate health benefits for all retirees if they could not take Medicare into account when structuring the health benefit packages they voluntarily provide their retired workers.

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