Out of Control Policy Blog

State/local gov medical benefits set to swamp

The Washington Post reports:

U.S. states may find that what it costs them to provide medical care for retired state employees will dwarf how much they pay for their retirement benefits, according to a new report.

and

State and local governments now face grim choices, such as raising taxes, cutting spending or benefits or setting aside dollars now. . .

The article is based mainly on a new report from the Rockefeller Institute of Government. Given the crushing impact pension obligations are already having, the news emerging that medical benefit obligations are even larger paints a truly ugly picture.

Adrian Moore is Vice President, Policy


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