**GAO-03-412R**                      Published: Feb 27, 2003. Publicly Released: Feb 27, 2003.                  

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## Highlights

Since World War II, some employers have voluntarily sponsored postretirement health plans as a benefit to their employees. According to government sources, these health plans constitute the primary source of health coverage for retirees aged 55 to 64 and supplemental coverage for nearly one third of retirees aged 65 or older with Medicare coverage. However, with costs already amounting to hundreds of millions of dollars for large employers and the baby boom generation nearing retirement age, employers are taking actions to control the costs of providing these benefits. In response to concerns that government contractors may be receiving underserved financial benefits by reducing retiree health benefits that were paid for under government contracts, we reviewed (1) what changes, if any, government contractors had made to their retiree health benefit plans and (2) the extent to which government agencies oversee retiree health benefit costs.

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## Topics

Health Care

Department of Defense contractorsEmployee medical benefitsHealth care cost controlRetireesHealth care costsProgram evaluationRetirement benefitsFederal contractorsContractorsHealth benefits