How Hemet officials are trying to cut health costs

As Hemet works to fix its budget, the biggest deficit remains the cost of health insurance for retirees.

The city is looking at paying at least $87 million over the next four to five decades to cover the cost of benefits for 265 workers, retired workers and their dependents.

Although the lifetime healthcare benefit was discontinued in 1998, there are still 225 retirees and 40 active employees in the program.

In an effort to help reign in those costs, the City Council voted Tuesday, Oct. 12, to create a trust account strictly for the program.

The account – referred to as an Other Post-Employment Benefit Trust – will earn higher interest and be easier to manage than the city’s current pay-as-you-go model, Deputy City Manager Jessica Hurst said. For the full article click here 

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