Supremes deny cert. in AARP-EEOC health benefits case

The Supreme Court on Monday gave employers a green light to reducehealth benefits for millions of retirees who turn 65 and becomeeligible for Medicare. The justices turned away a legal challenge fromAARP, the nation’s leading senior citizens lobby, which had contendedthese lower benefits for older retirees violated the federal lawagainst age discrimination.  The court’s action upholds, ineffect, a rule adopted last year by federal regulators that says the”coordination of retiree health benefits with Medicare” is exempt fromthe anti-age-bias law.  Advocates for companies and labor unionsopenly disagreed with AARP and applauded the outcome. They said thiscompromise rule will encourage employers to maintain health coveragefor their retirees. Otherwise, employers might drop all benefits fortheir former employees, they said.  Theysaid it will prove especially helpful to those younger retirees whowere offered continued healthcare when they left full-time work.

Source:  LA Times, http://www.latimes.com/news/printedition/asection/la-na-scotus25mar25,1,5568623.story