"AIDS Case Benefit Cut Let Stand"

Important note: Information in this article was accurate in 1992. The state of the art may have changed since the publication date.

"AIDS Case Benefit Cut Let Stand"

Washington Post (11/10/92), P. A1
Biskupic, Joan

Abstract: The Supreme Court yesterday upheld a ruling that permitted an employer to cut the insurance benefits of a man who developed AIDS, a move that could have widespread impact both practically and politically. The high court declined from reviewing a controversial federal appeals court ruling that said federal law does not prevent certain employers from making sudden benefit changes to save themselves money, regardless of whether individual situations prompted the reductions. The case involves H+H Music Co., which slashed the health benefits of employee John W. McGann from $1 million to $5,000 for lifetime treatment of AIDS. McGann died last year, while he was appealing a federal district court opinion in favor of his employer. In denying review of the case, the Supreme Court followed the advice of the Bush administration, which last month said nothing in the federal pension law at issue prevented H+H Music from adopting an insurance plan "that disadvantaged persons with AIDS for the purpose of reducing plan costs." Justice Department attorneys said that the recently enacted Americans With Disabilities Act might prohibit insurance-benefit discrimination against AIDS patients. AIDS advocates and others in the medical community expressed dismay at the court's decision, saying that the case represents a loophole in the federal Employee Retirement Income Security Act (ERISA), which governs certain health insurance plans. Employer groups have argued that unless companies have the flexibility to decrease health care benefits when they become too expensive, they would be more inclined to opt for minimal coverage at the beginning. Related Stories: New York Times (11/10) P. A18; Wall Street Journal (11/10) P. A4; Journal of Commerce (11/10) P. 9A; Baltimore Sun (11/10) P. 1A

921110
AD922202

Copyright © 1992 - Information, Inc., Bethesda, MD. The CDC National Center for HIV, STD and TB Prevention provides the following information as a public service only. Providing synopses of key scientific articles and lay media reports on HIV/AIDS, other sexually transmitted diseases and tuberculosis does not constitute CDC endorsement. This daily update also includes information from CDC and other government agencies, such as background on Morbidity and Mortality Weekly Report (MMWR) articles, fact sheets, press releases and announcements. Reproduction of this text is encouraged; however, copies may not be sold, and the CDC HIV/STD/TB Prevention News Update should be cited as the source of the information. Contact the sources of the articles abstracted below for full texts of the articles.

AEGiS is made possible through unrestricted funding from Boehringer Ingelheim, Elton John AIDS Foundation, iMetrikus, Inc., John M. Lloyd Foundation, the National Library of Medicine, and donations from users like you. Always watch for outdated information. This article first appeared in 1992. This material is designed to support, not replace, the relationship that exists between you and your doctor.

AEGiS presents published material, reprinted with permission and neither endorses nor opposes any material. All information contained on this website, including information relating to health conditions, products, and treatments, is for informational purposes only. It is often presented in summary or aggregate form. It is not meant to be a substitute for the advice provided by your own physician or other medical professionals. Always discuss treatment options with a doctor who specializes in treating HIV.

Copyright ©1980, 1992. AEGiS. All materials appearing on AEGiS are protected by copyright as a collective work or compilation under U.S. copyright and other laws and are the property of AEGiS, or the party credited as the provider of the content. .