IDEAS home Printed from https://ideas.repec.org/a/bla/pbudge/v46y2026i1p3-19.html

Addressing Retiree Health Care Costs

Author

Listed:
  • Robert Bifulco
  • Iuliia Shybalkina

Abstract

State and local governments face substantial unfunded liabilities from other post‐employment benefits (OPEB), primarily retiree health care. While pension policies provide useful lessons, OPEB presents distinct challenges: it is minimally prefunded, more legally flexible, and highly sensitive to rising health care costs. This article examines strategies to address escalating retiree health care costs, including benefit adjustments, higher retiree contributions, full prefunding, and partial prefunding approaches. Our analysis shows that, except in districts with steeply declining revenues, combining moderate benefit changes with partial prefunding can stabilize costs for most districts, though implementing such measures will require navigating politically challenging trade‐offs.

Suggested Citation

  • Robert Bifulco & Iuliia Shybalkina, 2026. "Addressing Retiree Health Care Costs," Public Budgeting & Finance, Wiley Blackwell, vol. 46(1), pages 3-19, March.
  • Handle: RePEc:bla:pbudge:v:46:y:2026:i:1:p:3-19
    DOI: 10.1111/pbaf.70003
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/pbaf.70003
    Download Restriction: no

    File URL: https://libkey.io/10.1111/pbaf.70003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:pbudge:v:46:y:2026:i:1:p:3-19. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0275-1100 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.