Healthcare costs for retired state employees are projected to surpass the healthcare costs for current employees for the first time in 2017, according to the governor’s budget report.
Faced with mounting retiree healthcare costs, Connecticut towns are making changes to get out of the healthcare business altogether. Matt Gallagan, town manager of South Windsor, said they no longer provide health benefits for retirees. Instead retirees can purchase a health plan through the town. South Windsor is one of several towns and cities that have moved away from providing long-term health benefits for their retirees.