LA County approves new health care benefits for future employees

The L.A. County Board of Supervisors approved changes Tuesday to the health care benefits future employees will receive once they retire. 

Under the new rules, which were agreed to by a coalition of unions earlier this year, the county will continue to pay for the health care of employees who retire after 25 years of work. However, that benefit will not fully extend to the retiree's spouses or children.

The new rules could save $840 million over the next 30 years, according to the county's CEO, Bill Fujioka.  The new policy will apply to employees hired after June 30. 

“The county was on the hook paying for health care for people who had never even worked for the organization," said Supervisor Don Knabe in February, when the deal was first announced.  "We had a responsibility to mitigate spiraling retiree health care obligations for future employees while still providing a level of retiree health care that is both sustainable and fiscally responsible." 

Retirees who are eligible for Medicare will also be required to enroll in the program.