Judge says companies can't cut health benefits when workers qualify for Medicare

[JURIST] A federal judge, responding to a lawsuit from the nation's largest advocacy group for older Americans [AARP press release], has blocked the government from allowing companies to offer fewer health benefits to employees when they become eligible for Medicare. The court ruling issued Friday temporarily blocks the Equal Employment Opportunity Commission [official website] from issuing a new rule that would allow companies to drop health insurance coverage when their retirees turn 65 and can receive Medicare benefits. Supporters of the rule change, including some unions, had argued that increasing costs faced by employers might stop some companies from offering retiree benefits altogether if they were forced to provide the same level of care for younger and older employees. Read an EEOC press release expressing disappointment at AARP's legal action. Reuters has more.



 

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