Chamber Says Federal Court Decision on Retiree Health Benefits Hurts Older Workers

WASHINGTON, D.C.—The United States Chamber of Commerce today expressed disappointment over a federal court ruling prohibiting the Equal Employment Opportunity Commission from issuing a regulation that would have encouraged employers to offer health care benefits to retired workers who are not yet eligible for Medicare.

"This decision is going to worsen the problem of insuring America's retirees," said Robert Costagliola, the Chamber's labor and employment counsel. "This is a train wreck waiting to happen as it will give employers a disincentive to offer retiree health benefits."

The court decision stems from an AARP-initiated lawsuit against the EEOC in which AARP was seeking to block a regulation that would have allowed employers to coordinate retiree health benefits with Medicare coverage.

The Chamber, along with a group of other associations including labor unions, filed a friend-of-the-court brief in the case. The brief supports the EEOC's position and points out that without this EEOC regulation, it will be more difficult for employers to find affordable methods for offering health coverage to retirees not yet eligible for Medicare.

"We supported the EEOC in its attempt to encourage employers to offer health benefits for workers who retire before age 65," Costagliola added. "This decision is short-sighted and could result in even greater numbers of retirees going without health coverage."

The U.S. Chamber of Commerce is the world's largest business federation, representing more than three million businesses of every size, sector, and region.

# # #

05-53