Postretirement use of health services: A model using employer-based data

Employers are faced with demographic, social and fiscal changes that mandate scrutiny of retiree benefits and the associated liability. Whether and in what form to provide benefits is in part dependent on the ability of the employer to estimate accurately the future use and cost of health care by its retirees. This study provides a model of postretirement health care costs using data generally available to employers. Regression models were significant and indicated that the identification of a minimal set of variables could accurately predict future liabilities.