Publications

Focus on Health Benefits - Federal Court Holds That the EEOC Cannot Reduce Retiree Health Benefits to Coordinate With Medicare Eligibility

Fall 2005
Employment & Employee Benefits Developments - Fall 2005

On March 30, 2005, a federal judge in the Eastern District of Pennsylvania issued a permanent injunction enjoining the Equal Employment Opportunity Commission ("EEOC") from promulgating a rule that would allow employers to reduce retiree health benefits when a retiree becomes eligible for Medicare. Currently, many employers offer employees who choose to retire early supplemental health benefits until they become eligible for Medicare. This is also known as "bridge coverage." Once a retiree becomes eligible for Medicare, the employer-provided health coverage is usually modified to take into account Medicare benefits.