Medindia

X

Near Failure by US States to Fund Retiree Healthcare Costs may Produce Budget Crises

by Lakshmi Gopal on  March 10, 2012 at 2:16 PM Health Insurance News   - G J E 4
US states haven't financed almost 96 percent of the $627.4 billion they were projected to owe for future retiree benefits in 2010, reports Bloomberg Rankings data on bloomberg.com.
 Near Failure by US States to Fund Retiree Healthcare Costs may Produce Budget Crises
Near Failure by US States to Fund Retiree Healthcare Costs may Produce Budget Crises
Advertisement

The nation is trying to find a way to finance the projected costs of retiree health care. New Jersey owed almost $7,600 per resident for public workers' post-employment benefits other than pension payments.

Advertisement
The estimated deficit grew from about 95 percent in 2009 as governors coped with lower general-fund revenue and rising demand for services following the longest recession since the Great Depression.

Alaska, Connecticut and New Jersey had the largest unfunded liabilities, ranked in proportion to population, among the 47 states examined.

So how does the US deal with the cost of healthcare, especially that of its older population?

Measures have been enacted last year by New Jersey that increased pension and healthcare contribution rates for government workers and raised the age for retirement with full benefits to 65 from 62. It is hoped that the changes will cut costs by at least $10 billion over 30 years.



Source: Medindia
Advertisement

Post your Comments

Comments should be on the topic and should not be abusive. The editorial team reserves the right to review and moderate the comments posted on the site.
User Avatar
* Your comment can be maximum of 2500 characters
Notify me when reply is posted I agree to the terms and conditions

You May Also Like

Advertisement
View All