A recent ruling handed down by the Equal Employment Opportunity Commission has given employers discretion in using Medicare eligibility as a factor when calculating health care benefits for retired employees, as reported by Marketplace. The AARP had raised a stink about the issue claiming that having employers shift health care costs to Medicare when applicable amounted to age discrimination. My question is, if the level of care and benefits remains the same, who really cares from what direction the bills are paid? If employers carry the burden then we all see it in our bottom line. If the government pays for it, then we all see it in our tax load. The end effect to us as a society is basically the same.This decision reaffirms in part exactly what Medicare was intended to do. The system has two major intents. First and foremost, Medicare is meant to fill the gap in cases where health care coverage is lacking. Secondly, Medicare is intended to help free the business world from the administration of benefits for people who no longer participate as an active part of their work force.
If the level of actual benefits is in no way reduced and the process of accessing those benefits is in no way hampered, then there's no room to gripe about employers shifting the burden. In fact, this kind of move is exactly what American business needs right now. However, if this decision in any way dilutes the benefits that hard working people have bargained their working careers for, then the AARP has an extremely valid argument and they desire to have that argument tested by the Supreme Court.











Reader Comments (Page 1 of 1)
1-03-2008 @ 1:20PM
Dick G said...
Unfortunately, as I understand it, the benefits will not be the same. As I read the rule, it allows corporations to drop all medical coverage it the retiree is covered by Medicare. Currently many corporations offer more benefits than offered by Meidcare, thus retiree will lose benefits. Further, for many year corporations have had to account for retiree costs. This will give them a huge windfall.