The Equal Employment Opportunity Commission has approved a rule allowing employers to coordinate company health benefits offered to retirees with Medicare or comparable state benefits, without violating the Age Discrimination in Employment Act. The rule means that employers do not have to ensure that Medicare eligible retirees are receiving the same benefits as younger retirees.

EEOC had earlier adopted an enforcement position that health insurance benefits received by Medicare-eligible retirees be the same, or cost the same, as health plan benefits received by younger retirees. The agency reversed itself after employers, labor unions, and state and local governments said this position would result in the reduction or elimination of retiree health benefits currently provided.

EEOC has issued a question and answer sheet clarifying the rule.