After GASB 45: Solving the Unfunded Liability Problem in Retiree Health Care

WASHINGTON, Sept. 17 /PRNewswire-USNewswire/ — A new study on retiree health benefits from the Center for State and Local Government Excellence finds that nearly all states have created a state-wide health care pool and many are looking closely at the state subsidy provided to future retirees.

After GASB 45: Solving the Unfunded Liability Problem in Retiree Health Care, written by Richard C. Kearney, director of the School of Public and International Affairs, North Carolina State University, and Robert L. Clark, a professor of economics and of management, innovation, and entrepreneurship in the College of Management, North Carolina State University, analyzes new survey data from the 50 states and a large sample of local governments. It examines what alternatives state and local governments are exploring, including cost containment, cost sharing, efficiencies, future cost shedding, pre-funding mechanisms, selling assets, and wellness and preventive illness programs.

Key findings include:

     --  Nearly all states have created a state-wide health care pool, providing         uniform benefit levels for the active workforce and to all retirees         residing in the state.     --  Many state plans include teachers and provide a local option for local         governments and special districts to participate.     --  In the last five years, 10 percent of states have established a plan         that limits the state subsidy for future retirees; 34 percent say they         are likely to introduce such a plan in the next five years.     --  Most states have implemented a variety of cost containment programs:  84         percent have a disease management program and 80 percent require         hospital inpatient precertification.     --  The most popular preventive medicine programs in states are: coverage         for a retiree's annual physical exam (72 percent); smoking         cessation (70 percent); and wellness newsletters or websites (66         percent). 

For a copy of the full brief visit http://tinyurl.com/aftergasb45

About the Center for State and Local Government Excellence

The Center for State and Local Government Excellence helps state and local governments become knowledgeable and competitive employers so they can attract and retain a talented and committed workforce. The Center identifies best practices and conducts research on competitive employment practices, workforce development, pensions, retiree health security, and financial planning. The Center also brings state and local leaders together with respected researchers and features the latest demographic data on the aging workforce, research studies, and news on health care, recruitment, and succession planning on its website, www.slge.org.

SOURCE Center for State and Local Government Excellence

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