132nd MAINE LEGISLATURE
LD 111 LR 176(01)
An Act to Increase the State's Share of Retired Teacher Health Insurance
Preliminary Fiscal Impact Statement for Original Bill
Sponsor: Rep. Dodge of Belfast
Committee: Labor
Fiscal Note Required: Yes
             
Preliminary Fiscal Impact Statement
FY 2025-26 FY 2026-27 Projections  FY 2027-28 Projections  FY 2028-29
Net Cost (Savings)
General Fund $3,032,120 $6,233,506 $6,409,917 $6,593,831
Appropriations/Allocations
General Fund $3,032,120 $6,233,506 $6,409,917 $6,593,831
Fiscal Detail and Notes
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.