Abstract
Abstract The increase in both retiree medical care expenditures and the retired fraction of the population has put pressure on retiree health care insurance providers. This chapter assesses future prospects for retiree health insurance, focusing on traditional approaches to retiree health benefits where the employer assumes most risk, and on defined contribution approaches where significant risk is shifted to the retiree. It also examines government benefits for retirees, including new Medicare prescription drug benefits. It models future retiree health care costs and opportunities to save before retiring, highlighting public policy obstacles and issues for employer-provided retiree health benefits.
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