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Senior Star 1st Quarter 2013

 

Retiree benefits costs push California city into bankruptcy
By Tracie Cone

All retirees get health insurance for themselves and a dependent for life. Read More

 

Text of CMS 2012 Report on ACA Effect on Costs for Medicare Beneficiaries (PDF)
“This second annual report details how millions of seniors and people with disabilities with Medicare continued to experience lower costs on prescription drugs and improved benefits in 2012 because of the [ACA]. Since the law’s enactment, 6.1 million Americans with Medicare who reached the Part D coverage gap also known as the ‘donut hole,’ have saved over $5.7 billion on prescription drugs. Drug savings of $2.5 billion in 2012 are higher than the $2.3 billion in savings for 2011…. [Projected] average savings per Medicare beneficiary [are] approximately $5,000 from enactment through 2022, while those with high prescription drug spending are projected to save much more — over $18,000.” (Centers for Medicare & Medicaid Services)

 

A Widening Gap for Cities: Shortfalls in Funding for Pensions and Retiree Health Care
“Besides pensions, many localities also have promised health care, life insurance, and other non-pension benefits to their retirees, but few have started saving to cover these long-term costs. These unfunded liabilities loom even larger than for pensions … As of fiscal year 2009, the cities in this report had promised at least $118 billion more than they had in hand to cover retiree health care benefits. Wide disparities exist in how prepared cities are to fulfill their pension obligations … Cities have more in common when it comes to gaps in funding for retiree health care and other non-pension benefits. As of fiscal year 2009 … Only Los Angeles and Denver had even half of the money needed.” (Pew Center on the States)

 

Sacramento City Manager Details Unfunded Retiree Healthcare Liability
“Most worrisome … is $440 million in retiree medical benefits that the city has no plan to fund besides annual payments of $11 million from the already battered general fund budget, which funds core city services such as police protection, park maintenance and fire personnel. The total unfunded liability stemming from medical benefits has grown by $60 million in the past five years.” (Sacramento Bee)

Michigan Cities Have $12.7B In Retiree Health Costs
“Michigan cities and townships that provide health care for retired public workers face nearly $13 billion in unfunded costs … with half setting aside no money to cope with a bill gobbling up more of their budgets…. [Detroit] is not alone in grappling with how to pay promised health benefits to retirees. More than 300 cities, townships and villages — home to two-thirds of state residents — face a combined $12.7 billion in unfunded liabilities in the next 30 years.” (CBS Detroit)

Retiree benefits costs push California city into bankruptcy

By Tracie Cone

All retirees get health insurance for themselves and a dependent for life. Read More

 

Text of CMS 2012 Report on ACA Effect on Costs for Medicare Beneficiaries (PDF)
“This second annual report details how millions of seniors and people with disabilities with Medicare continued to experience lower costs on prescription drugs and improved benefits in 2012 because of the [ACA]. Since the law’s enactment, 6.1 million Americans with Medicare who reached the Part D coverage gap also known as the ‘donut hole,’ have saved over $5.7 billion on prescription drugs. Drug savings of $2.5 billion in 2012 are higher than the $2.3 billion in savings for 2011…. [Projected] average savings per Medicare beneficiary [are] approximately $5,000 from enactment through 2022, while those with high prescription drug spending are projected to save much more — over $18,000.” (Centers for Medicare & Medicaid Services)

 

A Widening Gap for Cities: Shortfalls in Funding for Pensions and Retiree Health Care
“Besides pensions, many localities also have promised health care, life insurance, and other non-pension benefits to their retirees, but few have started saving to cover these long-term costs. These unfunded liabilities loom even larger than for pensions … As of fiscal year 2009, the cities in this report had promised at least $118 billion more than they had in hand to cover retiree health care benefits. Wide disparities exist in how prepared cities are to fulfill their pension obligations … Cities have more in common when it comes to gaps in funding for retiree health care and other non-pension benefits. As of fiscal year 2009 … Only Los Angeles and Denver had even half of the money needed.” (Pew Center on the States)

 

Sacramento City Manager Details Unfunded Retiree Healthcare Liability
“Most worrisome … is $440 million in retiree medical benefits that the city has no plan to fund besides annual payments of $11 million from the already battered general fund budget, which funds core city services such as police protection, park maintenance and fire personnel. The total unfunded liability stemming from medical benefits has grown by $60 million in the past five years.” (Sacramento Bee)

 

Michigan Cities Have $12.7B In Retiree Health Costs
“Michigan cities and townships that provide health care for retired public workers face nearly $13 billion in unfunded costs … with half setting aside no money to cope with a bill gobbling up more of their budgets…. [Detroit] is not alone in grappling with how to pay promised health benefits to retirees. More than 300 cities, townships and villages — home to two-thirds of state residents — face a combined $12.7 billion in unfunded liabilities in the next 30 years.” (CBS Detroit)

 

Quote of the Quarter:

 

“Our business in life is not to get ahead of others, but to get ahead of ourselves — to break our own records, to outstrip our yesterday by our today.”

Stewart B. Johnson (British artist known for his figurative work)