Chamber Hails Reversal of Retiree Health Benefits Decision

WASHINGTON, D.C.—The United States Chamber of Commerce today hailed a federal court ruling reversing a decision invalidating an Equal Employment Opportunity Commission (EEOC) regulation that encouraged employers to offer health care benefits to retired workers.

"This decision provides an incentive for American businesses to continue insuring retirees," said Robert Costagliola, labor and employment counsel for the National Chamber Litigation Center, the Chamber's public policy law firm. "The earlier decision discouraged companies from covering retired employees by not allowing them to coordinate benefits with Medicare."

The court decision, by a federal court judge in Pennsylvania, stems from an AARP-initiated lawsuit against the EEOC in which AARP was seeking to block a nationwide regulation that would have allowed employers to manage retiree health benefits in conjunction with Medicare.

The National Chamber Litigation Center filed a friend-of-the-court brief in the case on behalf of the Chamber, along with a group of other associations and labor unions. The brief supported the EEOC's position and pointed out that without this EEOC regulation, it would 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. "The court's reversal is a positive step for both retirees and the many employers seeking to maintain retiree health care coverage in the face of ever-increasing health care costs."

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.

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