Own Your Own Sickness

I think the real story about this EEOC decision is that big business is more ready for government-provided health care than ever.

The Equal Employment Opportunity Commission said Wednesday that employers could reduce or eliminate health benefits for retirees when they turn 65 and become eligible for Medicare.

The policy, set forth in a new regulation, allows employers to establish two classes of retirees, with more comprehensive benefits for those under 65 and more limited benefits — or none at all — for those older.

More than 10 million retirees rely on employer-sponsored health plans as a primary source of coverage or as a supplement to Medicare, and Naomi C. Earp, the commission’s chairwoman, said, “This rule will help employers continue to voluntarily provide and maintain these critically important health benefits.”

Legacy costs are crushing US manufacturing and putting as much as $1,500 on the nose of every car made in this country. Meanwhile, working class Americans are unable to save for retirement, have seen their pensions turned into 401(k) plans subject to the vagaries of the stock market, and now their familiar health care can be taken away from them. This ruling puts more Americans out on their own, like practically everything in George Bush's ownership society. But it also offers the possibility to expand the only health care system that will truly be able to drive down costs.

Wouldn't this be the perfect time to approach key businesses and ask for their support in reducing the Medicare age to 55, with this ruling as the template allowing them to loosen their entitlement burden? They could join with unions and interest groups in an outside-in strategy to pressure the Congress. We're obviously going to get a tremendous amount of pushback from pharmaceuticals and insurance companies in the coming health care fight, but having a corporate element on our side would at least make it more fair. And I think they're ready to ask for help, finally.