Public sector retirees to pay costly premiums for plans

The private sector began to eliminate retiree health insurance benefits back in the 1990s--the public sector, on the other hand, has yet to do so because of strong opposition from unions, according to The Atlantic. Currently, nearly 80 percent of state and local government organizations offer retiree health insurance. But these plans cost the government quite a bit--unfunded retiree insurance liabilities rack up to $627 billion. Public sector retirees who will soon enroll on the exchanges will find plans with higher deductibles and a smaller network. What's more, if they are unable to receive subsidies, the plans will be expensive. Article