U.S. health care costs per worker are estimated to rise to $11,188 next year, compared with $7,874 in 2007, Aon Hewitt says. Amid the expected cost increase, more local governments are cutting benefits for retirees. "There is no guarantee for retiree health; there never has been. It is not as simple to cut as it is in the private sector, but it's a target and it's unfunded," says Paul Fronstin of the Employee Benefit Research Institute.
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