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 Enough
States 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 Kaiser Health News' Daily Report - a summary of health policy coverage from more than 300 news organizations. The full summary of the day's news can be found here and you can sign up for e-mail subscriptions to the Daily Report here. In addition, our staff of reporters and correspondents file original stories each day, which you can find on our home page.