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AARP 'Deeply Disappointed' by Supreme Court Decision on Retiree Health Care Benefits

WASHINGTON, March 24 /PRNewswire-USNewswire/ -- The following is a statement by AARP Legislative Policy Director David Certner on the Supreme Court decision today declining AARP's request to review a federal rule allowing employers to reduce or eliminate health benefits for retirees when they reach 65 and become eligible for Medicare. Last December 26, the Equal Employment Opportunity Commission (EEOC) finalized and published the rule that AARP had challenged in lower federal courts.


"AARP is deeply disappointed by the Court's decision today. The Court's action clears the way for employers to discriminate by reducing or terminating benefits for older retirees simply because they've turned 65 years old.

"This double standard, one tier of coverage for those under 65, and another lower tier for those 65 and over, is especially troubling because it comes from the EEOC, the federal government agency created to enforce anti-discrimination policies.

"Beyond blatant age discrimination, the new policy is an ineffective Band-aid for the bigger issue facing American employers and workers: the skyrocketing cost of health care. By allowing employers to reduce or even eliminate health benefits for retirees when they reach age 65, this rule essentially shifts the costs of all retiree health care on to the backs of older retirees. The timing of this new rule couldn't be worse; due to rising costs and fixed incomes, many retirees are already foregoing needed services that have simply become unaffordable.

"Instead of discriminatory rules that simply shift health care costs to older retirees, we need real solutions that control ongoing and dramatic increases in health care costs. Political, business, union and non-profit leaders, as well as individual citizens, all have roles to play in devising effective policies that will ensure that every American has access to affordable health care."

About AARP

AARP is a nonprofit, nonpartisan membership organization that helps people 50+ have independence, choice and control in ways that are beneficial and affordable to them and society as a whole. AARP does not endorse candidates for public office or make contributions to either political campaigns or candidates. We produce AARP The Magazine, the definitive voice for 50+ Americans and the world's largest-circulation magazine with over 33 million readers; AARP Bulletin, the go-to news source for AARP's 39 million members and Americans 50+; AARP Segunda Juventud, the only bilingual U.S. publication dedicated exclusively to the 50+ Hispanic community; and our website, AARP Foundation is an affiliated charity that provides security, protection, and empowerment to older persons in need with support from thousands of volunteers, donors, and sponsors. We have staffed offices in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.

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