New Reporting Rule May Drive Health Savings Accounts; Retirees Eat Up Funds; Private accounts will cut costs, offer choice, says economic adviser.(HEALTH & MEDICINE)(Q & A)

Publication: Investor's Business Daily

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COPYRIGHT 2005 Investor's Business Daily, Inc.

Byline: GLORIA LAU

Until recently, investors didn't have to worry about companies' health care obligations to workers and retirees. And before disclosure rules changed a decade ago, it was hard for analysts and investors to even know how much they cost.

The legal change cut the number of retirees with company-sponsored medical coverage. A decade ago 44% of them had it; less than 20% do today. And most of that 20% gets insurance only because of their old union-type contracts.

In December 2006, a similar law will make municipal governments tell the public and their bond investors what they're providing for retiree health care. This may lead more employers to seek ways to cut costs.

Paul Zane Pilzer, an...

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