Overview
Health care costs
(including prescription
drugs) rise faster than
inflation
Costs of retirees increase
at greater rate than costs
for active employees
Costs for pre-Medicare
retirees are the highest
Trend toward early
retirement increases
retiree health liabilities
Aging population with
longer life expectancies
leads to greater demand
for health care services
GASB accounting
requirements [Learn More]
Rapidly escalating costs of health care premiums are adversely affecting an employee's ability to afford traditional retiree health benefits [link to benefits[. Public sector retirees and employees are bearing a significant amount of the cost associated with their health care - and in many cases, the full cost.
As the American health care system is battered by a crisis of rapidly escalating costs, more and more of the costs are borne directly by retirees.
Most states and many localities currently make health care benefits available to their pre-65 and post-65 retirees. Post-employment health benefits often extend to retirees' spouses and dependents.
Unfortunately, state and local governments are facing a seemingly insurmountable task of balancing their commitment to provide comprehensive health care benefits to employees and retirees, while also controlling expenditures within increasingly strained budgets. [more]
