Judge: Companies can offer two-tier retiree health packages
Reversing her earlier decision, a federal judgeruled that companies may offer younger retirees better health carebenefits than they give older retirees who qualify for Medicare.
The AARP sued over the rule change proposed bythe Equal Employment Opportunity Commission on grounds that unequalhealth packages amount to age discrimination.
U.S. District Judge Anita B. Brody initiallyagreed, granting an injunction in March that barred the federal agencyfrom adopting the rule. However, a recent U.S. Supreme Court ruling inan unrelated case compelled her to change course, she said in a rulingTuesday.
Brody prohibited the agency from acting, though, until the AARP has a chance to appeal.
A lawyer for the AARP, which sued on behalf ofseveral members who saw their health benefits decline when they turned65, said an appeal is likely.