May 2, 2019

States are cutting public retirees' health benefits

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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Deadly clashes erupt in Delhi ahead of Trump's visit

Rival protesters over the Citizenship Amendment Act in Delhi, India, on Monday. Photo: Yawar Nazir/ Getty Images

Delhi Chief Minister Arvind Kejriwal called for calm Tuesday as deadly clashes erupted in the city's northeast between supporters and opponents of India's controversial new citizenship law.

Why it matters: Per the BBC, a police officer and six civilians "died in the capital's deadliest day" since last year's passing of the Citizenship Amendment Act — which allows religious minorities but excludes Muslims from nearby countries to become citizens if they can show they were persecuted for their religion — hours before President Trump and members of the U.S. first family were due to visit the city as part of their visit to India.

Go deeper: India's citizenship bill continues Modi's Hindu nationalist offensive

South Carolina paper The State backs Buttigieg for Democratic primary

Democratic presidential candidate and former South Bend Pete Buttigieg speaks at an event in Charleston, South Carolina on Monday. Photo: Win McNamee/Getty Images

South Carolina newspaper The State endorsed former Southbend Mayor Pete Buttigieg on Monday night for the state's Democratic primary.

Why it matters: It's a welcome boost for Buttigieg ahead of Tuesday's Democratic debate in South Carolina and the state's primary on Saturday.

White House requests $2.5 billion to fight coronavirus as U.S. cases rise

Data: The Center for Systems Science and Engineering at Johns Hopkins, the CDC, and China's Health Ministry. Note: China numbers are for the mainland only and U.S. numbers include repatriated citizens.

The Trump administration sent a letter to Congress Monday requesting a funding commitment of at least $2.5 billion to help combat the spread of the novel coronavirus, as the number of confirmed cases in the U.S. rose to 53.

The big picture: As South Korea and Italy stepped up emergency measures in efforts to thwart the spread of the virus, WHO expressed concern about infections with no clear link to China. COVID-19 has killed at least 2,699 people and infected more than 80,000 others, with all but 27 deaths occurring in mainland China.

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