EEOC Rules on Age Bias in Benefits
By: Source: AARP Bulletin Today Date Posted: 2004-04-30 14:49:00-04:00
AARP vows to challenge a decision by the Equal Employment Opportunity Commission that would allow employers to slash health care benefits for Medicare-eligible retirees.
"We are trying to resolve this issue in a way that protects our members' interests," says AARP legislative representative Michele Pollak. "We will not hesitate to go to court if necessary to prevent the regulations from taking effect."
The EEOC approved regulations on April 22 exempting retiree health benefits from the federal age discrimination law. The new rules would let employers reduce or eliminate health benefits for retirees age 65 and older.
Millions of Medicare-eligible retirees who have additional coverage from their employers are at risk of losing their supplemental benefits.
Employers are not legally obligated to provide health benefits to anyone and may provide coverage for workers but not retirees.
Even so, a federal court ruled in 2000 that employers who provided health benefits for younger retirees had to supplement Medicare for older retirees. They had to ensure equal coverage or incur equal costs for both groups, the court said, to avoid discriminating on the basis of age.
Employers complained bitterly about the court's decision, saying that with the cost of health care going up, they would be forced to drop benefits for all retirees.
The new regulations are EEOC's way of keeping the age discrimination law from having "the unintended consequence of discouraging employers from providing valuable health benefits to retirees," EEOC chairwoman Cari M. Dominguez said in a statement.
But there is no guarantee, says AARP's Pollak, that letting employers jettison benefits for older retirees will ensure continued benefits for younger retirees.
Moreover, the EEOC "does not have the authority to make health care policy," Pollak says. "That's a job for Congress."
The EEOC's rightful role, she adds, is to protect Americans from discrimination in employment practices, including age bias in retiree health coverage.
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