The amount of cash paid annually for unfunded postretirement health benefit plans, assuming they are not independently insured, usually is equal to:

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The amount of cash paid annually for unfunded postretirement health benefit plans, assuming they are not independently insured, is usually equal to the amount necessary to pay the current year's health care cost. This is because, in an unfunded plan, there are no pre-funded assets set aside to cover future benefits; instead, costs are paid out of current revenues as they are incurred.

The Amount of Cash Paid Annually for Unfunded Postretirement Health