Public Employment Law Bulletin #34

Coordinating Retiree Health Benefits with Medicare: The EEOC Issues Its Long-Delayed Final Rule

Saturday, March 1, 2008

This bulletin discusses the federal Equal Employment Opportunity Commission's final rule permitting employers to coordinate their retiree health benefit plans with eligibility for Medicare. Published on December 26, 2007, the rule answers the question: Is it unlawful age discrimination to reduce a retiree's health benefits when the retiree becomes eligible for Medicare? The answer is no. As issued in its final form, the rule permits employers to offer retiree health benefits that may change, be reduced, or even be eliminated when a participant becomes eligible for Medicare. The rule is set out in the Bulletin.

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Topics - Local and State Government