<nobr>Oct 13, 2005</nobr>

AARP Appeals To The Third Circuit (AARP v. EEOC)

October 12, 2005
AARP Appeals To The Third Circuit (AARP v. EEOC)

Today, AARP appealed Judge Anita Brody's September 27, 2005 order that vacated her March 30, 2005 order. The matter has been appealed to the United States Court of Appeals for the Third Circuit. ERIC will most likely join with other employer groups and file an amicus brief. It is our understanding that our opportunity to file a brief will be in the second round, approximately 30 days after AARP files its brief.

Background
Judge Brody's September 27th order vacating her March 30th order was caused by the recent Supreme Court's decision in National Cable and Telecommunications Association v. Brand X Internet Services that held deference should be given to the Executive Branch in its interpretation of laws. Therefore, Judge Brody held that deference should be given to the EEOC in their interpretation of the ADEA. This reversal of the original decision now grants summary judgment to the EEOC and will permit the agency to release its formal exemption permitting coordination of employee health benefits with Medicare. EEOC, however, may not finalize its exemption until all appeals are exhausted. As stated above, today AARP appealed the decision to the Third Circuit, the same court that wrote the initial Erie County decision regarding age discrimination.

ERIC has made this matter a leadership issue and has been active in pursuing a positive outcome for employers. ERIC, The Equal Employment Advisory Council, and a coalition of other business groups filed an amicus brief in February 2005 urging the court to uphold the EEOC's authority to exempt coordination of health benefits from the ADEA.

ERIC asserted that the EEOC's rule is lawful and necessary to ensure that employers can continue to provide retiree health benefits to the extent that their resources will allow and that the exemption was sound policy contemplated by congress. Without the rule, employers will likely be forced to comply with the ADEA by curtailing retiree and/or active employee health benefits they currently provide.

In June, ERIC Health Policy Committee members met with David Certner, Director of Federal Affairs, of the AARP to share perspectives. In late 2004 and early 2005, ERIC worked to ensure the exemption received approval from OMB, HHS and DOL. ERIC has continued to work with Congressional staff on coordination of benefits.

Please contact Edwina Rogers at 202-789-1400 or erogers@eric.org with any questions or comments.

Edwina Rogers
Vice President, Health Policy
The ERISA Industry Committee
1400 L Street, N.W., Suite 350
Washington, DC 20005
(202) 789-1400
Cell (202) 674-7800
Fax (202) 789-1120
e-mail: erogers@eric.org
Text Files:

AARP's Notice of Appeal

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