EEOC Publishes Final ADEA Exemption Rules for Retiree Medical Benefits

Back in September, we wrote in the on-going case between the AARP and the EEOC concerning retirement benefits for Medicare-eligible workers:

The AARP has decided to ask the U.S. Supreme Court to review a Third Circuit Court of Appeals decision permitting the Equal Employment Opportunity Commission to issue an Age Discrimination in Employment Act exemption for retiree medical benefit plans that coordinate with Medicare . . . .

This  a complex question at the intersection of employment discrimination and employee benefits law. Although there is nothing like a circuit split in this area, it is a highly important issue for millions of Americans who are dealing with retiree health issues. Look for the Supreme Court to grant cert. and to uphold the EEOC exemption as reasonable under the circumstances.

The saga continues today with the New York Times reporting that the EEOC has published the final rule the AARP is challenging:

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.”

The new rules, published in today's Federal Register, are available here, and the EEOC's press release about the rules is here.

I guess the only thing left now to see is if the Supreme Court grants cert. Stay tuned.

PS