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Barbara B. Kennelly's Statement on the Equal Employment Opportunity Commission's Decision on Retiree Health Benefits
"This decision is one more step in a cumulative attack on senior benefits. It eliminates yet another cornerstone in the contract of social insurance that workers thought they could rely on during their working years, and leaves seniors, once again, at the mercy of the private sector." - - Barbara B. Kennelly
On behalf of our over 3 million members and supporters, the National Committee to Preserve Social Security and Medicare urges Congress to defend retiree benefits by blocking the Equal Employment Opportunity Commission's (EEOC) recent decision allowing employers to reduce or eliminate company health benefits to retirees eligible for Medicare.
Over one-third of our members and supporters currently enjoy retiree health benefits from their former employers. For many retirees, particularly those dependent on Social Security, the commitment made by their employers to help with health care expenses is a critical component of their retirement incomes. This new rule is not about coordination of benefits with Medicare - which is already legal - but about absolving companies from any responsibility to their former workers once they reach a certain age. The EEOC previously understood this important distinction, but completely reversed its position after intense lobbying pressure.
If Congress had enacted a comprehensive, affordable prescription drug benefit though Medicare, the EEOC change of heart might not have been so damaging to seniors. But this decision is one more step in a cumulative attack on senior benefits. It eliminates yet another cornerstone in the contract of social insurance that workers thought they could rely on during their working years, and leaves seniors, once again, at the mercy of the private sector. It will force retirees to trade employer-sponsored coverage that is often very good, for the limited prescription drug benefit recently signed into law, along with the higher costs and privatization of Medicare that are inherent in the new law. And if Congress is successful in privatizing Social Security as well, seniors will be left with no promises kept, and a tattered safety net.
Allowing companies to eliminate post-age-65 health benefits is a critical issue for millions of America's current seniors, as well as the many baby boomers who will begin retiring themselves before the end of the decade. Congress should block implementation of this harmful provision, and work with all of us who represent seniors to find a solution that doesn't leave retirees out in the cold.
The National Committee is a nonprofit, nonpartisan organization that acts in the interests of its membership through advocacy, education, services, grassroots efforts and the leadership of the board of directors and professional staff. The work of the National Committee is directed toward developing a secure retirement for all Americans.