Public sector retiree healthcare benefits, traditionally offered through group plans, have created nearly $800 billion in unfunded liabilities as costs rise and populations age. With limited assets set aside, these obligations strain state and local budgets, threatening credit ratings and fiscal stability. A sustainable solution lies in the individual marketplace, where Health Reimbursement Arrangements (HRAs) enable retirees to choose affordable, high-quality coverage. This model reduces employer risk and costs while preserving retiree benefits.

Facing the most acute period of cost escalation in more than a decade, employers who sponsor healthcare in the United States, are ready to make major changes. With medical and pharmacy costs rising faster than both wages and inflation, many organizations struggle to meet budgets and are forced to burden employees with rising contributions.