Seniors Ready to Sue Over EEOC Medicare Ruling

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Seniors Ready to Sue Over EEOC Medicare Ruling Provided by New York Times

Syndicate on 5/1/2004

by Evan Pondel

 

 

 

 

 

LOS ANGELES -- Senior advocacy groups are poised to pursue litigation following

a recent ruling by a federal commission that could cut or eliminate health

benefits for Medicare-eligible retirees.

The Equal Employment Opportunity Commission ruled last week that employers have

a right to adjust benefits according to an employee's eligibility for Medicare.

The decision is in response to a federal statute that requires employers to

provide the same benefits for pre- and post-Medicare eligible retirees. But the

EEOC claims the statute is discouraging to employers, and therefore they

shouldn't be required to provide those 65 and older with the same benefits as

younger employees.

" The ruling allows employers to coordinate the level and type of benefits, " said

Jennifer Kaplan, a spokeswoman for the EEOC in Washington, D.C. " The vote is to

help preserve health benefits for retirees. " Not so to senior advocacy groups.

Though the EEOC's ruling must be approved by several federal agencies, AARP is

concerned the action will set a precedent that could jeopardize access to health

care for 12 million Medicare beneficiaries.

" We are deeply disappointed by the EEOC's decision. It amounts to nothing but

age discrimination, " said Mark Beach, an AARP spokesman.

" In the next two weeks, AARP will consider litigation. Because of the ruling

many companies may now stop offering benefits to Medicare beneficiaries. "

Companies have long grappled with the cost of providing health care benefits to

seniors. The expense has also thwarted health plans, many of which have opted to

suspend such products indefinitely. For example, Blue Cross of California and

Kaiser Permanente eliminated Medicare Plus Choice coverage in Ventura and Santa

Clara counties last fall. The two health plans said they could no longer afford

to do business in those regions without receiving greater reimbursements from

the federal government.

Kaiser Permanente has yet to consider whether the EEOC's ruling will have a

profound effect on business. " It could go either way, " said Jim Anderson, a

spokesman for the Oakland-based health plan.

Seniors may be more inclined to purchase a policy from a health plan if their

former employer stops providing benefits. At the same time, health plans are

likely to lose business should employers eliminate benefits for

Medicare-eligible retirees. " It's just too early to tell what the situation will

be, " Anderson said.

Despite the unknown, seniors are already mounting campaigns to curb the EEOC's

ruling. Nan Brasmer just turned 65, making her instantly eligible for Medicare.

What Brasmer didn't consider was that the benefits she receives from her former

employer may soon fade.

" I had no idea that when I retired all these things would be out there attacking

retirees. We didn't work our whole lives to get stepped on, " said Brasmer, who

is now president of The California Alliance For Retired Americans just outside

Sacramento. " The employer always wants to take something away. Instead they

should be working to lower the cost of health care. " The former elementary

school librarian is trying to inform other seniors about the EEOC's move. " They

need to know that we are the only industrialized country in the world that

doesn't take care of its citizens. Let's put our money where our mouth is, " she

said.

AARP, which represents about 3 million Californians age 50 and older, is

attempting to reach a resolution with the EEOC before the ruling goes into

effect. If the bill doesn't receive any friction from federal agencies or the

Office of Management and Budget, EEOC spokeswoman Kaplan said the ruling could

be implemented this summer.

X X X Editor Notes:(For use by NYTimes News Service clients)

 

 

c.2004 Los Angeles Daily News

 

 

 

 

 

 

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