Legacy Costs

Paying retiree health care bills as they come due, rather than focusing on the solvency of the fund, is risky, a Mackinac Center analyst told the Lansing State Journal.

“They are paying their (health care) bills a they come due, but it’s risky,” Fiscal Policy Analyst James Hohman said. “These bills are going to go up. Who knows what’s going to happen with health costs.”

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The State Journal reported that Michigan has a $40 billion future liability for retiree health care for government employees, including teachers.

This recent  Center policy brief examines the issue more closely.