Health Insurance May End For Some County Retirees

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(Sacramento, CA)
Monday, January 29, 2007

The decision would affect county workers who retired after June 29th of 2003 and receive enhanced benefits. Supervisors will vote on the issue Tuesday. Megan McPherson with the county says the move is prompted by a change in the accounting rules. 

"The change came as a shock to the county. We had hoped that we could continue to recommend this year to fund the retiree health subsidy but according to accounting standards, which determine our bond ratings and our credit worthiness, we still have a huge liability if we continue the current liability plan."

Meantime, the county will continue to pay health subsidies for 4,000 former employees who retired before the enhanced benefits were offered in June of 2003. And for current employees, the county is setting up a special health savings account.