Employer-Provided Health Care Plans for Retirees

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Abstract
Many large employers extend health care coverage to retired workers. The unfounded liabilities associated with these plans are large and growing rapidly. Currently, there is relatively little explicit federal regulation governing the administration and funding of these plans. As a result, public policy is evolving through a series of court decisions and FASB guidelines. This article examines the incidence of retiree health insurance, the economic issues involved in this type of compensation, and the emerging public policies associated with employer-provided health insurance for retirees.

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