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Restructuring Retirement Risks$
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David Blitzstein, Olivia S. Mitchell, and Stephen P. Utkus

Print publication date: 2006

Print ISBN-13: 9780199204656

Published to Oxford Scholarship Online: September 2006

DOI: 10.1093/0199204659.001.0001

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Chapter Chapter Risk‐Sharing in Retiree Medical Benefits

Chapter Chapter Risk‐Sharing in Retiree Medical Benefits

(p.136) Chapter 8 Risk‐Sharing in Retiree Medical Benefits
Restructuring Retirement Risks

George Wagoner

Anna Rappaport

Brian Fuller

Frank Yeager

Oxford University Press

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.

Keywords:   medical care expenditures, prescription drug, company-provided health insurance, elderly

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