The court of appeals affirmed in part a district court judgment. The court held that for purposes of the Due Process Clause, an Oregon statute governing the provision of health care coverage to local government employees did not create a protected property interest in post-retirement health insurance coverage.
Under Oregon Revised Statutes §243.303(2), the governing body of any local government that contracts for or otherwise makes available health care insurance coverage for officers and employees shall, insofar as and to the extent possible, make that coverage available for any retired employee who timely elects to participate in that coverage. The statute also provides that such coverage shall be made available for a retired employee until the employee becomes eligible for Medicare coverage, and that it may, but need not, be made available thereafter.
