<nobr>Feb 4, 2005</nobr>

ERIC Calls AARP Action "Unconscionable"

February 4, 2005 -- Mark Ugoretz, President of The ERISA Industry Committee, called today's effort to derail an Equal Employment Opportunity Commission (EEOC) regulation declaring that employers may coordinate retiree health benefits with Medicare benefits "an unconscionable interference with the regulatory process that will result in the further decline of employer provided retiree health benefits."

AARP filed a motion in the U. S. District Court for Eastern District of Pennsylvania for an order restraining the EEOC from issuing its regulation.

"The EEOC determined that coordination of employer provided retiree health benefits with Medicare benefits was a reasonable and responsible means of ensuring sound coverage for retirees. If employers are prohibited from coordinating their health benefits and providing a 'bridge' to Medicare, they are more likely to decrease coverage for their entire population, particularly retirees because of the increased costs of continuing employer coverage for those who are eligible for Medicare," said Ugoretz.

"Retiree health benefits are fast becoming an endangered species as health care costs increase exponentially, especially for the elderly. The AARP has had and has taken advantage of every opportunity to convince the EEOC, the Department of Labor, the Department of Health and Human Resources, and the Office of Management and Budget of their position. Every agency with the expertise to decide this important policy decision has reached the same conclusion: that it is reasonable, proper and sensible for employers to coordinate their retiree health coverage with Medicare. This last ditch effort to subvert the regulatory process is unconscionable and should be rejected by the court," Ugoretz said.

"AARP's position undermines the likelihood that their own constituency -- post-age-55 retirees -- will be able to receive retiree health benefits. Ugoretz said AARP's position undermines any objective for dignity or equality in the workplace. Contrary to the AARP, there is no dignity in a position that is anti-health care, anti-coverage, and anti-elderly and that simply defies logic." The EEOC regulation is supported by large and small employers as well as organized labor groups.

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