If the accused were trying to “stick it to the man,” they stuck it to the wrong one – the taxpayers who have been forced to subsidize these bad decisions through higher taxes.
retiree healthcare
What are the major cost driver's of Connecticut's deficit in 2020?
Connecticut's retirement healthcare fund for state employees is short $36 billion, which amounts to more than $10,000 per person in the state, according to a new study by the American Legislative Exchange Council.
The agreement negotiated between Gov. Dannel Malloy and government union leaders contains a provision that would provide healthcare for retired state employees through Medicare Advantage.
But the inclusion of the Medicare Advantage switch in the deal with government unions may hamper future lawmakers’ ability to make administrative changes to the way Connecticut handles retiree healthcare.
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.
Connecticut was labelled a “sinkhole state” and placed 49th in the nation based on its financial issues and taxpayer burden in the annual Financial State of the States report by Truth in Accounting, a government accounting think tank.
The unfunded pension and healthcare liabilities were the largest factors of debt in determining Connecticut’s ranking.
Connecticut state retirees are having a new benefit added to their healthcare package as a result of anti-discrimination laws in President Obama’s Affordable Care Act. Starting in July, hearing aids will be covered by the state retiree health plans. The devices cost, on average, about $4,500 according to the American Association for Retired Persons.
Previously, insurance companies covered the costs of hearing aids for children 12 and under. State retirees were able to obtain a discount on hearing aids through Anthem Blue Cross, Blue Shield. However, based on the ACA’s restrictions, that age-based limit is considered discriminatory.
This year we’ve tried to shine a light on Connecticut’s bonded debt, as well as our pension and retiree healthcare liabilities. When all of this debt is combined, Connecticut is one of the most indebted states in the nation.
A new report by J.P. Morgan’s Michael Cembalest provides additional clarity.
The recent op-ed in the Courant is correct on one count: state employees are not the problem.
If not state employees, then who is to blame for the seemingly perpetual state budget deficit? The problem is politicians who, and this won’t surprise anyone, made promises they couldn’t keep.
