U.S. Ruling Backs Benefit Cut at 65 in Retiree Plans
The New York Times, December 27th, 2007
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.”
Premiums for
employer-sponsored health insurance rose an average of 6.1 percent this
year and have increased 78 percent since 2001, according to surveys by
the Kaiser Family Foundation. Because of the rising cost of health care
and the increased life expectancy of workers, the commission said, many
employers refuse to provide retiree health benefits or even to
negotiate on the issue.
In general, the commission observed,
employers are not required by federal law to provide health benefits to
either active or retired workers.
Read more of this article.Medicare and Your Retirement: Learn what Medicare will cover during your retirement, and whether you
will need Supplemental Health Insurance to cover other potential
medical costs.