The U.S. Supreme Court will not be discussing whether employers have a right to reduce retiree health benefits when retirees become eligible for Medicare.
The court let the practice continue by deciding Monday not to review a June 2007 3rd U.S. Circuit Court of Appeals decision on AARP v. EEOC.
The Supreme Court did not say why it has declined to take up the case.
The appeals court held that employers can coordinate retiree health benefits with Medicare without violating the federal Age Discrimination in Employment Act.
The Equal Employment Opportunity Commission came out with guidance in December 2007 confirming that it believes employers can coordinate retiree health benefits with Medicare.
The Supreme Court’s decision to “deny certiorari” effectively upholds the EEOC guidance as well as the 3rd Circuit ruling, experts say.