Chamber Urges Lawmakers to Protect Retiree Health Benefits

WASHINGTON, D.C. – The United States Chamber of Commerce thanked House lawmakers for highlighting the potential problems for older workers following a federal court decision that could undercut employers' efforts to provide retiree health care benefits.

"The Employer-Employee Relations Subcommittee hearings will highlight the important issues at stake and lay the groundwork for future action – should the decision stand on appeal," said Randel K. Johnson, Chamber vice president for labor policy and employee benefits.

In a Third Circuit Court decision last month, the federal court ruled the Equal Employment Opportunity Commission could not proceed with regulations that would have made it easier for employers to coordinate retiree health benefits with Medicare.

In testimony before the subcommittee today, the Chamber warned lawmakers that, without a reversal, employers will be less likely to offer health coverage to retired workers.

"[Given] the rapidly escalating costs of health care … [the decision] leaves employers with few options other than to restructure and reduce the health benefits provided to retirees," according to Steven Spencer, partner with Morgan, Lewis and Brockius and a member of the Chamber's labor relations committee.

"For early retirees, employer-sponsored plans generally provide access to relatively affordable comprehensive coverage. Without this coverage, many retirees who are pre-65 and too young for Medicare would be hard-pressed to find compatible, affordable coverage on their own," according to the Chamber's testimony.

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

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A copy of the Chamber's testimony is available online.
http://www.uschamber.com/issues/testimony/2005/050428preserveretireehealthcare.htm