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Retiree Medical Plan - Is Employment-Based Carve-out Permissible?


Guest Ignatius J. Reilly

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Guest Ignatius J. Reilly

Can a retiree medical VEBA (assuming that such does not conflict with the collective bargaining agreement establishing the VEBA) implement a provision requiring retirees to enroll in other employer-provided medical coverage if they re-enter employment? This would be analogous to a spousal carve-out, but for the retiree (as compared to the retiree’s spouse). The intent would be to have the current employer’s health plan stand primary and the VEBA secondary for purpose of coverage.

In a broader sense, the question is: Can a retiree medical plan require a retiree who returns to work to enroll in employer-provided coverage?

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