This document contains witness testimonies and prepared statements from the Congressional hearing called to examine the rise in health care costs and its effect on retirees' health benefits. Opening statements are provided from committee members. The retiree's perspective is given by a retiree and a granddaughter of a retiree who have had their health insurance terminated; and by a representative from the Midland Alive Coalition, a citizens' group concerned with the decision at one steel mill to terminate the medical benefits of former union employees now on pension. The views of experts in the field are presented by Anthony Gajda, an economist, and Donald Fuerst, an actuary from William M. Mercer-Meidinger, Inc. Mr. Gajda summarizes three regional surveys regarding post-retirement medical benefit plans, discusses businesses' concerns about rising retiree medical costs, and presents recommendations for change in retiree medical plans. Mr. Fuerst discusses the relationship between current retiree costs and ultimate retiree medical costs, and presents the Unit Credit, Entry Age, and Aggregate Methods as three ways to accumulate by retirement date the necessary reserve to fund an employee's benefits. The views of labor are given by the vice-president for human affairs for United Steelworkers of America, and the business perspective is discussed by the president of the Washington Business Group on Health, an organization for the health policy and cost management interests of major employers. Supplemental materials are provided throughout the document and in the appendices. (NRB)