The proposed regulation by the EEOC to permit employers to coordinate retiree health benefit plans with eligibility for Medicare has created a lot of controversy.  Groups both for and against the decision think their position will provide seniors with better health coverage.

Voting against the Medicare prescription drug bill was one of the most difficult decisions I have made since being elected to Congress.  I did it in part because I feared that employers would reduce prescription drug benefits for their retirees and shift the costs to the government. 

 Many companies voluntarily provide health care benefits to retiring seniors who do not yet qualify for Medicare.  This so-called 'bridge' coverage was ruled as age-discrimination by a Third Circuit Court of Appeals.  The Commission's new rule would clarify that such 'bridge' coverage does not violate any age discrimination laws and encourage employers to offer these important benefits to non-Medicare retirees. 

On the other hand, seniors understandably fear that this new rules gives employers an invitation to reduce health benefits for retirees once they qualify for Medicare coverage.  Often, Medicare benefits are not as generous as employer-sponsored plans. 

While health care costs continue to skyrocket, Congress must do its best to encourage companies to provide health benefits for their workers and retirees.  Unfortunately, the law of unintended consequences often applies in Washington, D.C., and Congress must be careful not to do anything that will discourage employers from providing health benefits.  This is a complicated issue that I will continue to follow closely.