Can a city or a state afford near-universal health care? New York City Mayor Bill de Blasio and California’s newly sworn-in governor, Gavin Newsom, think so.
Earlier this week, both Democratic leaders initiated ambitious plans that would move their jurisdictions toward universal coverage, an idea that has gained traction in progressive circles thanks to support from leaders on Capitol Hill, including Sen. Bernie Sanders and Rep. Alexandria Ocasio-Cortez.
The popular progressive platform permeated state and local politics in the midterm elections. Washington state came close to putting the matter before voters as a ballot initiative; it failed to get enough signatures to qualify. Newsom, meanwhile, campaigned on single-payer, a form of universal health care that has yet to be successfully implemented in any state because of cost concerns.
to November 1st, pursuant to P.A. 97-0694, the State Actuary Law. Under the State Actuary Law, the systems must annually submit a proposed certification for the following fiscal year prior to November 1st of the current calendar year. The State Actuary then must issue a
preliminary report concerning the systems’ proposed certification by January 1st. The State Actuary’s report must identify any recommended changes in actuarial assumptions based upon the review of the retirement systems’ actuarial assumptions.
Retirement System (SERS) had unfunded liabilities of $30.4 billion, approximately 22.8% of the total unfunded liabilities of the five systems, followed by the State Universities Retirement System (SURS) with unfunded liabilities of $25.9 billion, which represents 19.4% of the total unfunded liabilities. Table 1, on the following page, provides a summary of the financial condition of each of the five State
retirement systems, showing their respective liabilities and assets as well as their accumulated unfunded liabilities and funded ratios.
The PPD is updated each spring from data available in the most recent Comprehensive Annual Financial Reports (CAFRs) and Actuarial Valuations (AVs). Intermediate updates may occur when new variables are added or data errors are corrected.
To conduct an in-depth analysis requiring full access to the database, download the full PPD.
The brief’s key findings are:
- The headline from the 2018 Trustees Report was an earlier depletion date for the Hospital Insurance (HI) trust fund, suggesting Medicare faces growing trouble.
- However, the trust fund reserves are small compared to HI expenditures, and the HI component only accounts for about a third of the Medicare system.
- In fact, Medicare’s outlook is considerably better than it was a decade ago, even under projections that assume policymakers curb some recent cost controls.
- Despite the improvement, Medicare does face financing challenges because it:
- has to operate within the very expensive U.S. health care system;
- requires beneficiaries to pay substantial out-of-pocket costs; and
- has some serious gaps in insurance protection.
Dallas Police & Fire Pension System filed a lawsuit against Buck Consultants, its longtime actuary and adviser, claiming the firm failed to provide proper counsel as the pension fund lost substantial sums of money due to a flawed DROP program.
The $2.1 billion pension fund faulted Buck for issues stemming from the pension fund’s deferred retirement option plan, which it adopted in 1993 after consultation with Buck. The program allowed members to contribute retirement funds while remaining on active duty, with a guaranteed rate of return of no less than 8%.
Federal, state and local government officials haven’t been talking much during the midterm election cycle talk about the fiscal stresses governments face from aging populations, but it will be difficult not to discuss it more in the coming years.
According to the U.S. Census Bureau, by 2026 unprecedented aging demographics will push 17 U.S. states into a category none are currently in: “superaged.” That includes Florida, Michigan, Pennsylvania and Ohio.