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May 20, 2013
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Exclusive: State, municipal retirees face increase in healthcare premiums (Podcast)
(2007-12-12)
SANTA FE (KSFR) - -- Dec. 12 Exclusive report: The 42,000 state and municipal retirees whose healthcare insurance comes from the state's Retiree Health Care Authority face an average nine-percent increase in their monthly premiums, beginning in January.

But the authority says even that won't fully plug a $178 million shortfall this fiscal year and the extra $4 billion in newly anticipated expenses expected in coming years.

The issue comes up as benefits plans in New Mexico and around the nation implement new accounting standards that require them to fully fund future financial obligations.

Those rules are set by the Government Accounting Standards Board.

Executive Director Danielle Wilson says in addition to the increase in premiums, the agency might have to increase deductibles and cut some benefits.

Wilson says actuarial experts made assumptions about future retiree benefits that were later proven wrong. Those include the number of people who would opt into the program and the rise in overall healthcare costs.
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