A lawsuit filed against the SAG-AFTRA Health Plan, which claimed that changes to eligibility for benefits “illegally discriminated” against older members, has been settled
Plaintiffs filed the action in December 2020, following the Plan’s August 2020 announcement of major changes to the benefit structure and eligibility requirements that, in effect, eliminated Plan health coverage for certain Plan participants age 65 and older and pushed them to Medicare coverage. Plaintiffs claimed that breaches of fiduciary duties by the Plan’s trustees caused losses in Plan assets that led to the changes.
“In addition, the Plan has agreed to implement certain changes for the next four years that will inure to the benefit of all Plan participants.
“Defendants have similarly agreed to the settlement for the sake of avoiding the time and expense of litigation. They maintain that the 2020 changes, including those that affected Senior Performers, were necessary to preserve the financial health of the Plan and the Plan’s continued ability to continue to provide high quality benefits to the greatest number of participants, and that the changes have achieved precisely that result.
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