Current Savings Fall Short Of What Will Be Needed To Meet Retiree Health Costs
CQ HealthBeat: Pew: Five Percent Savings Rate For Retiree Health Obligations Not EnoughStates are on the hook for about $600 billion in retiree health benefits promised to public employees - but they've set aside only about $31 billion, or around 5 percent, according to a study released Tuesday by the Pew Charitable Trusts. "The situation has worsened since fiscal year 2008, when states had $587 billion in liabilities and $32 billion in assets," the study found. The study doesn't say that states should have saved up all of this money, or even most of it. But "the future fiscal burden could be enormous if more savings are not set aside or costs are not better managed," the study warns (Reichard, 4/26). This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
