Retiree vs. ee contribution to self-funded health plan

[Guest Diana Prewitt]

I've searched without locating a definitive answer. For a self-funded health plan covered by ERISA, can you increase the retiree dollar contribution and have the employee dollar contribution remain the same? We currently use the same monthly funding amounts for actives and retirees--can a Plan use different amounts for these two groups?

[mroberts]

I know this used to be ok, but I can't help but feel that I ran across a recent article indicating this was age discrimination. Other variables that could come into play are the verbage of the SPD and types of plans and so on that these retirees are being offered. Are retirees offered the same benefits as active employees? Or is it a scaled back medical plan? Have you thought about doing away with retiree health benefits? This seems to be a common decision by many employers since it can be a burdensome expense down the road if the plans aren't carefully developed.

[Don Levit]

mroberts may be thinking of the recent Supreme Court case which seemed to imply that retiree benefits, if coordinated with Medicare, would be discriminatory, in that the actual benefits would be reduced from the employer (if self insured, or the group insurer if fully insured).

Are benefits scaled back to coordinate with Medicare?

Don Levit

[mbozek]

I thought only employees are covered under federal age discrimination laws, not retirees. Employers have discontinued retiree coverage without terminating coverage for active employees.