US agency OKs slashing of health benefits for over-65 retirees

In reporting the ruling, the New York Times Thursday cited a study by the Kaiser Family Foundation showing that premiums for employer-run health insurance have risen by 78 percent since 2001.

Wednesday’s announcement of the new ruling follows a lengthy court battle over the issue. In 2000, the US Court of Appeals for the 3rd Circuit in Philadelphia held that the 1967 Age Discrimination in Employment Act barred employers from spending less on health benefits for older retirees than for younger ones.

It has long been common practice for employer-run health plans to factor in benefits available to those over 65 under Medicare, often providing supplemental benefits to make up for costs not covered by this government-run program. The 2000 ruling would have compelled health care plan administrators to demonstrate that the benefits—taking Medicare into account—were equal for those over and under 65.