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Supreme Court Bars Retiree From Suing Under ADA Over Health Benefit Cuts

Justice Neil Gorsuch held that the ADA protects only those currently employed or seeking work, excluding retirees from challenging benefit changes.

A general view of the U.S. Supreme Court after the court upholds a Republican-backed ban in Tennessee on gender-affirming medical care for transgender minors in Washington, D.C., U.S., June 18, 2025. REUTERS/Kevin Mohatt/File Photo
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Overview

  • The Supreme Court ruled 8–1 that Karyn Stanley cannot sue the City of Sanford under the ADA for reduced health benefits following her 2018 disability retirement.
  • Justice Neil Gorsuch wrote that the ADA’s definition of “qualified individual” applies only to people holding or seeking employment at the time of discrimination claims.
  • Stanley retired at 47 after a Parkinson’s diagnosis; a 2003 policy reduced her insurance subsidy to two years instead of coverage until age 65.
  • Justice Ketanji Brown Jackson dissented, warning the decision undermines disability rights and urging congressional action to extend protections to retirees.
  • Justice Sonia Sotomayor noted that retirees might still bring ADA claims if they can show discriminatory benefit decisions occurred while they remained qualified employees.