Issues: State Employee and Retiree Health Care

The State of Illinois provides generous heath care benefits to its employees and retirees, benefits now estimated to be underfunded by $24 billion. Other Post Employment Benefits (OPEB) costs such as retiree health care are paid for by the state using a pay-as-you-go method, which means monies have not been set aside in a separate fund or trust to pay down this existing liability. Read more about IIFS analyses of the state’s health insurance program as well as our recommendations for reform here.

Recent Research