LD 178 LR 575(01)
An Act To Increase the State Share of the Cost of Health Insurance for Retired Teachers
Preliminary Fiscal Impact Statement for Original Bill
Sponsor: Rep. Collings of Portland
Committee: Education and Cultural Affairs
Fiscal Note Required: Yes
Preliminary Fiscal Impact Statement
FY 2019-20 FY 2020-21 Projections  FY 2021-22 Projections  FY 2022-23
Net Cost (Savings)
General Fund $3,541,465 $7,340,408 $11,410,868 $15,767,566
General Fund $3,541,465 $7,340,408 $11,410,868 $15,767,566
Fiscal Detail and Notes
The Retired Teachers' Health Insurance Program within the Department of Education will require General Fund appropriations of $3,541,465 in fiscal year 2019-20 and $7,340,408 in fiscal year 2020-21 for the costs associated with removing the cap on the increase in the State's total cost for retired teachers' health insurance premiums enacted in Public Law 2013, c. 368 and increasing the State's contribution to the retired teachers' cost of health insurance premiums from 45% to 50% in fiscal year 2019-20 and from 50% to 55% in fiscal year 2020-21.  
This legislation also requires the State's share to increase from 55% in fiscal year 2020-21 to 90% in fiscal year 2027-28.   The cumulative cost of the increases over the next 10 years is estimated to be $237,342,903.  The estimated cost of this bill, provided by the Office of Employee Health and Benefits, assumes an average increase in premiums of 3.64% per year.  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.