Illinois Policy Institute hosting conference call with journalists to explain, discuss new standards and what it means for future state budgets

The Illinois Supreme Court ruled recently that state workers cannot be asked to pay higher premiums for the virtually free health-insurance coverage they receive after they retire. But new accounting standards set by the Government Accounting Standards Board, or GASB, highlight just how large Illinois’ unfunded health insurance liability is and why this ruling puts taxpayers on the hook for steep costs in the future. The inability to reform this massive debt will handcuff future state budgets and threaten the state’s financial well-being for years to come.

WHAT: The Illinois Policy Institute will host a conference call with journalists on Tuesday, July 29, to discuss the new financial standards set by GASB and what they mean for Illinois. During this call, the Institute will also release the findings of a new report on this topic, “Taxpayers on the hook for billions in hidden government-worker health insurance costs.”

WHEN: 10:30 a.m. Tuesday, July 29

WHERE:  This will be a phone conference.

DIAL-IN INFO: Participants should call 1-800-309-2350. When prompted, dial access code: 857-2009

ON THE CALL:  Ted Dabrowski, vice president of policy and lead retirement specialist at Illinois Policy Institute, and Ben VanMetre, senior tax and budget analyst. There will be a brief introduction, remarks from Ted and Ben, and then the line will be open to questions.

Some key findings from the report:

• Illinois has more than $56 billion in unfunded government retiree health insurance liabilities.
• Government retiree health insurance and benefit costs have previously been largely kept off state budgets through accounting tricks and gimmicks. New government accounting standards have forced these liabilities to be reported and become public.
• Across the country, state governments are on the hook for $529 billion in unfunded government retiree health insurance and benefit debt. That equals an average of $1,632 each taxpayer in the country is on the hook for.
• Illinois has the fourth-highest level of government worker health-insurance debt in the nation and represents 10 percent of the national government worker health-insurance debt load.
• Today, most retired state workers pay almost nothing for generous health-insurance benefits that allow them to retire in their 50s with full health coverage. They also pay almost nothing for health insurance to supplement Medicare coverage in their later retirement years.

We respectfully request that journalists RSVP for the call if possible. To RSVP, contact Diana Rickert or Nathaniel Hamilton (312) 607-4977.