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Company requiring employees over age 65 off insurance - Illinois

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  • Company requiring employees over age 65 off insurance - Illinois

    Recently I was made aware of a company who polled their participating employees and determined many would be reaching the age of 65 during the year. The CEO stated the company would no longer provide those 65 and over and full time employees the option to take/ keep health coverage and force them onto Medicare.

    Perhaps I'm wrong here, but wouldn't that be a discriminatory concern and considered illegal? Mind you, I'm aware of the ACA, but I found this statement from her to be completely shocking!

    Wouldn't that be the same as discriminating against a new employee by refusing the individual insurance because of pregnancy? A disability?

  • #2
    It's not inherently illegal. See this article from AARP.
    I am not able to respond to private messages. Thanks!


    • #3
      It would be age discrimination to drop everyone who turns 65 from participating at all . And Medicare laws do not allow an employer to force age 65 onto Medicare. And honestly it would not be beneficial to the employer unless the employer has less than 20 employees. Because if they have more, they are considered the primary payer...... I used to have a link directly from the Medicare site, but lost it when I changed computers, but I found this from SHRM:

      "Active employees who continue to work past age 65 cannot be dropped from their employer's group health plan without violating the federal Age Discrimination in Employment Act (ADEA). In addition, the Medicare secondary payer rules prohibit an employer from reducing health benefits to current employees as a result of their eligibility for Medicare based on age (except in the case of certain small employers). Thus, while coverge for current employees over age 65 may be coordinated with Medicare, the employer must offer health benefits to those employees that are equal to the benefits that it offers to other similarly situated employees (this prohibition does not apply to retirees, as discussed below).

      As regards coordinating coverage under the group plan with Medicare for employees age 65 and older, employer size is a factor:

      ē If an employer has more than 20 employees, in most instances the group health plan is the primary payer and Medicare acts as the secondary payer. Traditional Medicare has two main parts: Part A is hospital coverage, and Part B is medical services. Generally, everyone should take Part A when they become eligible since it is free.

      Employees have the option of enrolling and paying the monthly premiums for Part B coverage. If they donít enroll in Medicare Part B, they need to get a deferral from Medicare so they are not subject to penalties when they enroll in the future.

      ē If an employer has fewer than 20 employees, Medicare becomes the primary payer and the employerís plan is the secondary payer. In this instance, itís essential that employees turning 65 enroll in Medicare Parts A and B. If they donít enroll, then generally they will have to pay from their own pocket anything that Medicare would have covered."
      Last edited by hr for me; 03-28-2013, 10:00 AM.