Aside from the $83 billion Illinois state government owes to the pension plans it operates for retired employees, the state has an unfunded liability to provide health insurance for pensioners, totaling more than $54 billion. The Illinois Policy Institute suggests
basing premium subsidies on income, age at retirement and years of service. Lifelong public workers collecting modest retirement incomes would largely see their insurance subsidies remain the same, but former union bosses or university executives collecting annual pensions nearing $200,000 would be required to cover their own health insurance costs. Moving forward, the state could reduce this liability further by capping subsidies to new retirees at supplement levels and by phasing out subsidies for new hires altogether.It sounds like a no-brainer to me.