The Third Circuit Court of Appeals has issued a much anticipated opinion
that supports the ability of employers to reduce or eliminate the health
benefits payable to retirees who qualify for Medicare. In AARP v.
EEOC, the court ruled that the Equal Employment Opportunity
Commission may lawfully issue an exemption to the Age Discrimination in
Employment Act that allows retiree health benefit plans to coordinate
with Medicare or comparable state-sponsored health benefit programs.
