EEOC defends letting firms drop retiree health benefit
Following outcry over an EEOC ruling, Commissioner Leslie Silverman appeared before the Senate Special Committee on Aging to defend the rule that gives employers flexibility to coordinate coverage with Medicare without violating the Age Discrimination in Employment Act. Silverman said that fewer employers offer health insurance, emphasizing it is a voluntary benefit, and arguing that not making the change would encourage employers to drop health insurance for all workers. Critics claim the exact opposite, saying the EEOC has opened the door for employers to drop benefits. Arguing that company-sponsored health plans usually provide better benefits than Medicare and that under the rule retirees are at risk of losing better coverage when they need it most.
See "EEOC defends letting firms drop retiree health benefit", T. Shawn Taylor, Chicago Tribune, May 17, 2004