From: frank_lautenberg@lautenberg.senate.gov
[mailto:frank_lautenberg@lautenberg.senate.gov]
Sent: Wednesday, September 08, 2004 3:37 PM
To: lavena@optonline.net
Subject: Responding to your message


September 8, 2004

Mrs. Lauri Vena
33 Squire Terrace
Colts Neck, NJ 07722

Dear Lauri:

     Thank you for contacting me with your concerns about the status of
retiree health benefits. I share those concerns, and I appreciate hearing
from you on this very important subject.

     While Section 631 of the "Medicare Improvement and Prescription Drug
Act" (Public Law 108-173) created an incentive for employers who cover
prescription drugs for their retired employees to maintain these benefits,
the Congressional Budget Office still estimates that 2.7 retirees will lose
their existing coverage. This is one reason why I felt compelled to vote
against final passage of the bill.

     Recently, the Equal Employment Opportunity Commission (EEOC) ruled that
this provision is, in fact, legal and does not constitute age
discrimination. This ruling will make it very likely that employers will
reduce or eliminate the health benefits they offer retirees as these
retirees become eligible for Medicare.  The EEOC's decision reverses its
prior policy as well as an August 2000 ruling by the Third Circuit Court of
Appeals stating that federal law requires employers to ensure that pre- and
post- Medicare eligible retirees receive health benefits of equal type and
value.

     I am extremely troubled by the action of the EEOC, and oppose any steps
that might permit employers to stop providing health benefits to retirees.
I will do what I can to ensure that all retirees continue to receive the
benefits they have been promised by their employers, regardless of their
Medicare eligibility.

     Again, thank you for your comments.