Cash-strapped state and local governments are drowning in health-care costs because they offer “Cadillac” benefits to their employees and pay more for medical coverage than private employers, according to a study.
Last year, public employees nationwide received an average of $4.66 per hour in health benefits, compared with $2.08 for workers in the private sector, the Manhattan Institute, a conservative think tank, found.
Governments could save $20 billion if their coverage were in line with the private sector, the study said.
Public employees contributed far less for their coverage — 15 percent of the premium compared with 25 percent for private-sector workers.
Government benefits also have lower deductibles, the study found.
Gov. Cuomo has fought to require public workers to pay more toward their medical coverage.