Expensive decision: Judge rules in favor of state retirees over health insurance

A judge's ruling that the state of North Carolina owes money to retired workers who were forced six years ago to start paying premiums for health insurance coverage could cost the state hundreds of millions of dollars.

The 2011 law passed by the legislature was intended to cut back on the amount of money the state spends annually on retired state employees  -- a sizable portion of the state's population. If the ruling stands, experts say it could cost the state's taxpayers hundreds of millions of dollars.

The retirees argued that they had been promised the benefits of continued health insurance at no cost -- a benefit that had been available for decades and something the average person would consider  mighty generous.

The judge ruled that the state was contractually required to provide the free coverage. It was part of the deal when they began working for the state and the state did not have the right to change course, the court said.

Lawmakers will now have to find a way to come up with the money. The result can only be higher taxes.

Published in Editorials on May 24, 2017 9:33 AM