Sunday, January 27, 2008
EEOC Issues Rule Stating That Employer's Can Reduce Retiree Health Insurance Once They Qualify For Medicare
A December 27, 2007, A.P. article entitled EEOC Clarifies Retiree Health Plans discusses a December 26, 2007 EEOC rule which permits employers to reduce retiree health insurance once they are eligible for Medicare. The rule thus makes clear that employers can spend less on employees under 65 than those over 65. This rule codifies a practice which most employers already follow.
The EEOC's press release is available here. The EEOC also published a question and answer list that many might find help that is available here. A copy of the new rule as published in the Federal Register is available here. It will be codified at 29 CFR 1625 and 1627.
Mitchell H. Rubinstein