Reinventing healthcare for public sector retirees

Public sector retiree healthcare benefits, traditionally offered through group plans, have created nearly $800 billion in unfunded liabilities as costs rise and populations age. With limited assets set aside, these obligations strain state and local budgets, threatening credit ratings and fiscal stability. A sustainable solution lies in the individual marketplace, where Health Reimbursement Arrangements (HRAs) enable retirees to choose affordable, high-quality coverage. This model reduces employer risk and costs while preserving retiree benefits.

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