The board overseeing the health plan cited a rising volume of retirees, a shrinking workforce and rising Medicaid Advantage costs. Fiscal year 2025 will be covered with reserves, but those will be depleted in 2026, according to the report. By then, losses are expected to reach up to $38 million.
Unfunded healthcare benefits promised to retired public employees and their dependents is common across states, incentivizing state lawmakers to look in new directions to save on costs. In August, North Carolina officials warned their state health plan could also soon be facing insolvency.
Unfunded retiree healthcare liabilities across all states surpassed $1 trillion in 2019, according to the American Legislative Exchange Council.
