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.


