Billion Dollar Reduction In State Employee Health Care Liabilities
Governor Malloy and State Comptroller Kevin Lembo announced Tuesday that the state of Connecticut will save approximately $1.68 billion through another reduction in the state’s future unfunded state employee and retiree health care liabilities.
According to an actuarial report released Tuesday, the savings result from the reduction of the state’s unfunded actuarial accrued liability (UAAL) from $17.9 billion to $16.2 billion.
The reduction was achieved through the implementation of several health care cost initiatives, including a reduction in health care cost rates and well as changes to the state’s new prescription drug contract terms. Governor Malloy said action was necessary now in order to prevent these issues from being pushed off into the future.
Both Malloy and Lembo stressed the importance of utilizing collaboration in order to find innovative ways to address state employee health care in the future.
As officials continue to negotiate state employee and retiree health care terms, Lembo says that it will be vital to maintain a level of communication between the state’s Heath Care Cost Containment Committee (HCCCC) and the employees and retirees themselves.