News Headlines Article

California’s Retiree Health Care Costs Jump Past $70 Billion
capital public radio

The state controller’s office says California is now on the hook for more than $70 billion in health care costs for retired state workers. That’s a 10 percent increase from last year. Gov. Jerry Brown plans to take the issue on in his new budget proposal next month.

The sharp increase in retiree health care costs comes mostly because we’re all living longer. Controller John Chiang says the state must start pre-funding its retiree health care benefits – just as it does with pensions. He compares it to making credit card payments: