As we recently been reporting, the focus has been on the federal regulation, promulgated by the Equal Employment Opportunity Commission (EEOC), which essentially allows employers to discriminate against their retirees by reducing or ending their health benefits when they turn 65 and become eligible for Medicare.

AARP filed a lawsuit in federal district court, challenging the EEOC regulation. “While we have had our differences with AARP, most notably over mandatory Social Security, we applaud their efforts here,” said Association Counsel Bill Rehrey. “They were successful when the court granted an injunction to stop the regulation.”

In her ruling, US Judge Ann B. Brody relied upon the court's earlier decision involving Erie County, Pennsylvania. Members recall from our previous reports that Erie County was the first case in which the federal court stopped employers from discriminating against their Medicare retirees.

According to Judge Brody, the court “has already ruled that allowing employers to give retirees 65 or older health benefits that are inferior… is illegal.” We've yet to hear the final word on this issue, with the EEOC appealing Brody's decision to the federal circuit court of appeals.