Health Insurance & Age Discrimination

The Age Discrimination in Employment Act (ADEA) prohibits an employer from discriminating against a worker or applicant because of age. This applies to workers aged 40 and older.

Age Discrimination

• The ADEA prohibits age discrimination against workers or applicants aged 40 or older when an employer makes employment decisions about the following: hiring, firing, promotions, layoffs, training, compensation and benefits. The law applies to employers with 20 or more employees.

Benefit Protection

• The Older Workers Benefit Protection Act of 1990 prohibits an employer from denying benefits to older employees because of their age. This applies to benefits such as life insurance, health insurance, pensions and retirement benefits.

Equal Benefits or Equal Cost

• The law, however, does take into consideration that providing certain benefits to older workers will cost more than providing the same benefits to younger workers. An employer can provide equal benefits to all workers regardless of age, or can reduce the benefits provided to older workers if the employer spends the same amount on younger workers and older workers. For example, the employer can pay the same amount for health-insurance premiums for every worker even if the employee contribution amount paid by older workers is greater, or even if older workers receive fewer benefits than younger workers receive.