ABA Family Legal Guide

The Rights of Older Americans

Age Discrimination on the Job

Can my fringe benefits, such as employee insurance benefits, be reduced because I am older?

Normally no, although the law gives employers some flexibility in applying this rule. The general rule, with some exceptions, requires employers to provide all age groups the same benefit, or, alternatively, provide a benefit that costs the same for all age groups. For example, if a given life insurance benefit actually costs the employer more for older workers, then the employer may provide older workers a smaller insurance benefit, as long as the cost of the benefit to the employer is the same as that offered to younger workers.

As to health insurance, employers must cover older workers and their spouses under the same conditions as they cover younger workers. Your benefits cannot be lowered just because you become eligible for Medicare. In fact, the employer insurance must remain the primary insurer. Medicare will cover you as a secondary insurer while you continue working.