Some states have stopped paying for public retirees' health care benefits in response to rising health care costs and squeezed budgets, the Wall Street Journal reports.

By the numbers: There's about a $600 billion gap between what states have promised retirees — mostly in health benefits — and what they have actually saved up, according to government data compiled by Eaton Vance Corp.

The big picture: The decisions are separate from pension benefits. It's easier legally to cut retirees' health care benefits than pensions, which drives some of these decisions.

  • North Carolina will no longer pay workers' health benefits once they retire, starting with new workers hired in 2021.
  • Kansas has asked retirees to pay their entire premiums, which have jumped to as much as $1,000 a month. And Iowa has capped its flagship university's contribution to retirees' health care.
  • When Kansas made these changes beginning in 2017, three-quarters of enrollees dropped out. And the state's retiree health care liability dropped from $6.1 million to $508,000.

My thought bubble: The problem of rising health care costs is even more dire at the federal level, but states — unlike the federal government — must balance their budgets.

Go deeper: There is another pre-existing conditions problem — for seniors

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Judge temporarily halts Trump's WeChat ban

Photo: Sheldon Cooper/SOPA Images/LightRocket via Getty Images

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Why it matters: The temporary injunction means WeChat will remain on Apple and Google's app stores, despite a Commerce Department order to remove the app by Sunday evening.

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