A study used data from the Employee Benefits Surveys conducted by the Bureau of Labor Statistics to examine the influence of employer-provided retiree health insurance on retirement decisions. The analysis found that most coverage is similar to that of active workers but takes Medicare into consideration, and requires retiring workers to meet eligibility conditions (length of service). Analysis indicates that retiree health plans tend to discourage job turnover and delay retirement up to the time a worker meets the eligibility requirements of the health plan. Retiree health plans encourage retirement after workers have achieved this eligibility. The strength of incentives depends on the extent and nature of the benefits of the plans. Further analysis using Current Population Survey data supported the same findings and also found that the eligibility for Medicare benefits affects the retirement decision. Conclusions argue that economic and policy studies of the retirement decision may have overestimated the effect of pensions by ignoring the influence of retiree health insurance. The close economic association between pension and retiree health plans suggest that both types of benefits influence the timing and rate of retirements. (Contains 27 references.) (JB)