EEOC Rule On Medicare Stirs Controversy

Law360, New York (January 3, 2008, 12:00 AM EST) -- As the cost of health insurance continues to climb, the Equal Employment Opportunity Commission has enacted a controversial rule exempting employers from the Age Discrimination in Employment Act in coordinating employees' health benefits with Medicare.

The rule means employers will not face ADEA consequences if they reduce or eliminate the health benefits of retirees who become eligible for Medicare or comparable state-sponsored health benefit. This also applies to coverage for spouses and dependents of retirees.

Previously, employers were required to provide the same health benefits, both...
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