LA County to Trim Retiree Healthcare Benefits for New Employees

Los Angeles County Supervisors have finalized health benefit reforms for future employees. If the reforms are approved, the county could save up to $840 million over the course of the next 30 years. 

Though retiree health benefits were a contentious talking point in labor negotiations last year, county and union officials announced an agreement that would scale back benefits for officials hired after July 1, while the benefits for current employees will remain unchanged.

County officials seemed relieved to come to agreement with labor officials, as they praised the unions for agreeing to the deal. Board Chairman Don Knabe told reporters that the change in benefits would allow the county to continue to provide retiree healthcare in a sustainable and fiscally responsible way.

New hires will still cover somewhere between 40% to 100% of health insurance costs for retirees—depending on how long the retiree worked with the county. The change will be in health coverage for the former employees’ spouses and children. 

Currently, the county pays $487.7 million in healthcare for retirees.

Read more about the trims here.