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Retiree healthcare changes in Connecticut union deal may set bad precedent

The agreement negotiated between Gov. Dannel Malloy and government union leaders contains a provision that would provide healthcare for retired state employees through Medicare Advantage.

But the inclusion of the Medicare Advantage switch in the deal with government unions may hamper future lawmakers’ ability to make administrative changes to the way Connecticut handles retiree healthcare.

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Christmas in July? Concessions deal includes $104 million lump sum payment

Union members will receive $2,000 lump sum payments, which will count toward their pensions, next July as part of the concessions deal worked out between Gov. Dannel Malloy and union leaders.

SEBAC, the bargaining coalition that negotiates benefits for state government unions, represents approximately 40,000 members, meaning the state of Connecticut could have to make a payout as high as $80 million, although the lump sums will be pro-rated for part-time employees.

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The Yankee Institute for Public Policy Studies is a research and citizen education organization founded in 1984 under section 501(c)(3) of the Internal Revenue Service code. As one of America’s oldest state-based think tanks, Yankee develops and advocates for free market, limited government public policy solutions in Connecticut.

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Yankee Institute for Public Policy 216 Main Street Hartford, CT 06106 Phone: 860-282-0722

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