Medicare for Current Employees

[Guest PBJ]

An Employer is shopping for new health care insurance providers. It found a carrier where the coverage for the employees would be the same as it is now, with only a minimal increase in premiums. The Employer pays 80% of the premium and the employees pay 20%. The Employer was satisfied until it learned that one employee (an over age 65, long-time and still active employee) would cost $2,000 per month. This was about 1/6 of the total cost of all employees. It would like to have the employee sign up for a Medicare Advantage type plan so that Medicare pays first. The Employer will pay the cost of such plan for the employee. Is this a violation of age discrimination laws because the Employer is kicking the employee out of its plan? Is this ok for the employer to do since it will pay the cost?

Any guidance would be greatly appreciated.

Thank you

[MARYMM]

An Employer is shopping for new health care insurance providers. It found a carrier where the coverage for the employees would be the same as it is now, with only a minimal increase in premiums. The Employer pays 80% of the premium and the employees pay 20%. The Employer was satisfied until it learned that one employee (an over age 65, long-time and still active employee) would cost $2,000 per month. This was about 1/6 of the total cost of all employees. It would like to have the employee sign up for a Medicare Advantage type plan so that Medicare pays first. The Employer will pay the cost of such plan for the employee. Is this a violation of age discrimination laws because the Employer is kicking the employee out of its plan? Is this ok for the employer to do since it will pay the cost?

Any guidance would be greatly appreciated.

Thank you

Yes, it could be a problem depending on how many employees this company has. I'm rusty on this stuff and can't quickly find the Federal Law that controls this, but here is an explanation of it

http://www.adminastar.com/providers/MSP/Pr...WorkingAged.pdf

edited to add : I found it in a post I made months ago on another BB. It is TEFRA (TAX EQUALITY AND FISCAL RESPONSIBILITY ACT OF 1982, REVISED

1986) AND DEFRA (DEFICIT REDUCTION ACT OF 1984)