By NextBestFitTask 4.2.4 of 6
Retiree health benefits (pre-65 and Medicare supplements): employers with contractual obligations convert them to cash or pension increases at actuarial value; OPEB liabilities are largely extinguished.
Who does it
Employers / unions
When
Year 4
Trade-off
Converting retiree benefits to cash honors obligations but gives retirees less certainty than a benefit.
Part of: End employer-sponsored insurance for covered services
Job-based coverage for UHP services ends for about 179 million people. Employer premium payments of $1.05T (private, federal, state & local) stop; the employer tax ($873.4B) is at its full rate. Worker premium contributions ($382.1B) end.
This step changes 5 existing laws, programs, or institutions. See the list.