Reply #6: One group of large employers will be incentivized to drop [View All]

[SteveG]

retirees, and that group will be State and local government. Since the incentives given to private employers are tax based, and State and Local Governments don't pay taxes, they don't get any incentive to keep their retirees on their plans. In fact they have good reason to dump them into the federal system, because the insured pool after moving the retirees, who are heavy users of prescription benefits, will be younger and therefor less likely to need expensive prescription drugs, therefor costing less in premiums paid by the State or local government.