The Benistar Senior Star Brings You the Latest News on Retiree Medical Plans.
[message type=”custom”]“One of the secrets to winning the game is making the right alliance. That way you can not only survive, but thrive.” James Lloyd, motivational speaker.[/message]
Retirees’ Medical Bills Are Bringing Down Detroit
“Pension and retiree-health-care obligations make up the bulk of the city’s unsecured debt, and their costs are rising rapidly. The emergency manager, Kevyn Orr, is right that Detroit must reduce its retirement-related debt to secure its future, but he has to be more specific about his target. Cutting retiree health care … should take priority over pensions.” (Bloomberg)
Even More Retirees Coming After Baby Boomers
“The number of Americans reaching age 65 each year will continue to grow beyond the Baby Boomers, according to a trend analysis from LIMRA…. Specifically, 3.4 million individuals are projected to reach age 65 in 2013. By 2023, 4.1 million Americans will reach 65 and then 4.2 million by 2050.” (PLANADVISER.com)
The aggregate trend for 2012 was a bump of 2.7%, similar to that of 2011, according to pharmacy benefit manager Express Scripts. However, the company also finds that the spending decline was offset by an 18.4% rise in spending on specialty medications.read more »
Step Onto the Cable Car and Deposit $13,487 for San Francisco’s Retiree Health Care
“To cover the gap [in pension funding for San Francisco city workers], each household in the city would have to fork over $1,677…. But when it comes to retiree health care costs, it’s another story. San Francisco has saved less than one percent of its $4.4 billion tab — and each household would have to pay $13,487 to make up the difference.” (SFGate)
Cost of Retiree Healthcare Benefits for States and Municipalities: The Next Shoe to Drop?
“Kentucky is … opting to issue bonds in order to cover its annual costs for ‘other post-employment benefits’ (OPEB), which includes benefits like health care and life insurance for retired workers. In fiscal 2012, the state’s five main retirement health insurance plans combined for a total unfunded liability of more than $6 billion, while the state’s OPEB cost that year was nearly $850 million … The tactic of borrowing money to pay for those costs has not won the state favor with ratings analysts.” (Governing)