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132nd MAINE LEGISLATURE |
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LD 111 |
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LR 176(01) |
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An Act to Increase
the State's Share of Retired Teacher Health Insurance |
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Preliminary Fiscal
Impact Statement for Original Bill |
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Sponsor: Rep. Dodge of Belfast |
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Committee: Labor |
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Fiscal Note Required: Yes |
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| Preliminary
Fiscal Impact Statement |
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FY 2025-26 |
FY 2026-27 |
Projections FY 2027-28 |
Projections FY 2028-29 |
| Net Cost
(Savings) |
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General Fund |
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$3,032,120 |
$6,233,506 |
$6,409,917 |
$6,593,831 |
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| Appropriations/Allocations |
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General Fund |
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$3,032,120 |
$6,233,506 |
$6,409,917 |
$6,593,831 |
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| Fiscal Detail
and Notes |
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The Retired
Teachers' Health Insurance program within the Department of Education will
require General Fund appropriations of $3,032,120 in fiscal year 2025-26 and
$6,233,506 in fiscal year 2026-27 for the costs associated with increasing
the State's contribution to the retired teachers' cost of health insurance
premiums from 60% to 65% in fiscal year 2025-26 and 65% to 70% beginning in
fiscal year 2026-27. The estimated cost of this bill assumes an average
increase in premiums of 5.3% per year for all plans other than the Maine
Education Association Benefit Trust's (MEABT) Medicare Advantage plan. For
that plan, the estimated cost assumes that enrollment in the plan will grow
at an annual rate of 1.2% per year and that the premium rate will hold at its
current level of $356.17 per month through fiscal year 2028-29. The total cost of this provision over time
will depend on actual health premium cost inflation and the number of retired
teachers in the future. |
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