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U.S. Supreme Court

Supreme Court Declines AARP’s Appeal in Health Benefits Case

Posted Mar 24, 2008, 11:02 am CDT
By Debra Cassens Weiss

The U.S. Supreme Court has refused to hear a challenge to a federal policy that makes it easier for companies to pay lower health benefits to retired workers when they turn 65.

A rule adopted by the Equal Employment Opportunity Commission in effect allows companies to reduce health benefits when retired employees qualify for Medicare, the Associated Press reports. The rule was designed to discourage companies from eliminating retiree health benefits altogether because of soaring costs.

The AARP had claimed in its lawsuit challenging the rule that the EEOC violated the Age Discrimination in Employment Act. The case was AARP v. EEOC.

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