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"Reduced rate" and "100% of premium" are oxymoronic. It's 25% of the premium (20% for some old timers). Remember, us taxpayers are paying 75% of the premium.So let me get this straight. You think there is a problem with public employees who have paid into medicare their whole career, reach medicare age. Then opt to continue with their health insurance at a reduced rate and pay 100% of the premium? I would like to see the numbers on this. I think you are seeing problems where they don't exist. I don't think most retirees can afford that There are cops and police that don't even take the health insurance offered. In many workplaces one would be compensated for this... and as far as how much of the premium municipalities pick up is negotiated at the local level into their labor contract. I have heard as little as 50% up to 95%.
I am talking only pre-medicare coverage.
The fact that you don't think most retirees can afford insurance on their own is irrelevant. In the private sector, it is not what an employee "needs" or "can afford", but where the labor supply and demand curves intersect.
As someone paying the bill, I do not believe in post employment benefits other than reasonable severance in the event of a layoff. And yes, I think someone taking a "pass" on an offered health insurance benefit should be compensated. Though, when the private sector does this, the compensation is a fraction of the actual cost - just enough incentive to encourage people to use the insurance through their spouse. (Something that UPS now mandates)
There is a side effect of continued insurance - early retirements. Far fewer people would retire at 50 if they did not get insurance. This would be both good (less pensions collected) and bad (shifting the seniority/pay curve for a job upwards).