Connecticut has reduced its future unfunded state employee and retiree health care liabilities by $1.68 billion thanks to reduced health care utilization and a more cost effective prescription drug plan, government officials said Tuesday.
The state’s projected unfunded actuarial accrued liability—or the amount of money taxpayers owe to finance health benefits of retired state workers— has fallen from $17.9 billion to $16.2 billion over the last year, a significant reduction that primarily reflects a decline in health care cost trend rates, as well as changes to the state’s new prescription drug plan, Comptroller Kevin Lembo said Tuesday.
The decline in medical utilization mirrors a national trend in which fewer people are going to a hospital or doctor because of the poor economy.
Meanwhile, the state’s new prescription drug contract will reduce drug costs in the 2013-2014 fiscal year by 11 percent, according to state actuaries.
