Employers Can Cut Medical Coverage for Medicare Eligible Retirees

The Equal Employment Opportunity Commission, on Wednesday, said that employers could cut the medical coverage of those retirees eligible for Medicare. Whether or not an employer decides to cancel coverage for those over 65 with Medicare is up to the employer but this opens the door to the option of canceling coverage if they want to.

The policy, set forth in a new regulation, allows employers to establish two classes of retirees, with more comprehensive benefits for those under 65 and more limited benefits ? or none at all ? for those older.

Before there is an uproar, this wasn’t anything new, just a more specific outline of an existing law. The current law states that employers are not required by law to provide health insurance to either active or retired workers, so to require an employer to insure retired workers doesn’t make sense. The EEOC was merely reiterating an already clarified issue.