Jottings By An Employer's Lawyer

Monday, June 04, 2007

EEOC 2, Old Folks 1 - 3rd Circuit Upholds Medicare Coordination Rule

A hotly contested EEOC regulation which authorizes “the practice of altering, reducing or eliminating employer-sponsored retiree health benefits when retirees become eligible for Medicare or a State-sponsored retiree health benefits program," which has had an up and down judicial ride, ends the day on an up note as the 3rd Circuit holds that it is within the agency's power. AARP v. EEOC(3rd Cir. 6/4/07) [pdf].

Although AARP had initially won summary judgment, the lower court reversed itself following an intervening Supreme Court decision dealing with an agency's powers. See my earlier posts here and here. The 3rd Circuit affirmed the victory for the EEOC, although on different grounds.

The decision lifts the injunction and allows the EEOC to go forward with implementing the regulation. The final rule is on the EEOC's web site here.


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