Massachusetts faces huge deficits for employee healthcare
The cost of ensuring public employees in Massachusetts receive their long-term healthcare could bury the Bay State in a sea of debt. According to Reuters, the 50 largest cities in the commonwealth owe their public employees up to $20 billion in healthcare, which could result in the slashing of public services.
The price tag to be paid by each family is significant. For example, Reuters reports that a Boston family would have to pay an additional $100,000 over three decades to supplement just a fraction of what needs to be paid out.
"The [state] legislature and municipalities face a clear and critical choice: cut back retiree health care benefits to an affordable and sustainable level or see cities and towns sink farther and farther into debt while decimating local services," the Massachusetts Taxpayers Foundation released in a statement.
Michael Widmer, president of the foundation, says the figure stems from all the healthcare costs owed to approximately 150,000 current and retired public employees within the 50 communities. To mitigate such costs, the foundation has suggested raising the age when benefits can be collected from 55 to 62 years old.
The price tag to be paid by each family is significant. For example, Reuters reports that a Boston family would have to pay an additional $100,000 over three decades to supplement just a fraction of what needs to be paid out.
"The [state] legislature and municipalities face a clear and critical choice: cut back retiree health care benefits to an affordable and sustainable level or see cities and towns sink farther and farther into debt while decimating local services," the Massachusetts Taxpayers Foundation released in a statement.
Michael Widmer, president of the foundation, says the figure stems from all the healthcare costs owed to approximately 150,000 current and retired public employees within the 50 communities. To mitigate such costs, the foundation has suggested raising the age when benefits can be collected from 55 to 62 years old.
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