AARP Appeals Ruling on Retiree Health Care

October 18, 2005 ( - The AARP is appealing a federal court ruling that would allow employers to offer more generous retiree health care benefits to those not yet eligible for Medicare.

Business Insurance reports that the AARP is appealing the ruling to the US 3 rd Circuit Court of Appeals in Philadelphia, saying the ruling would result in more employers cutting health care benefits for older retirees.

Last month, US District Judge Anita Brody reversed her previous ruling that denied authority to the Equal Employment Opportunity Commission (EEOC) to exempt two-tiered retiree health benefits from the Age Discrimination in Employment Act (ADEA). She ordered, however, that the effect of the ruling be delayed until the AARP had a chance to appeal (See Employers Cheery Over Latest in ‘Erie County’ Retiree Benefits Controversy ).

Employers applauded last month’s ruling, saying it would help to prevent companies from not providing any retiree health care coverage due to high costs.