Report Sees Major Rise in State, Local Spending for Retiree Health Care
State and local governments' spending on retiree health benefits over the next 40 years is expected to more than double as a share of operating revenue to 2.1%, according to a Government Accountability Office report released in November, HealthLeaders Media reports.
According to the report, the number of retirees nationwide would increase by about 70% from three million now to 5.1 million by 2050, while annual spending on retiree health benefits will increase from the current $15.8 billion to $237.3 billion by 2050.
State and local governments' liabilities for retiree health benefits currently amount to more than $530 billion, according to GAO.Of the 89 state and local governments GAO reviewed for the report, only 35% reported prefunding retiree health care benefits (Simmons, HealthLeaders Media, 12/29/09). This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.