LD 112 LR 207(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 and Housing
Fiscal Note Required: Yes
Preliminary Fiscal Impact Statement
FY 2023-24 FY 2024-25 Projections  FY 2025-26 Projections  FY 2026-27
Net Cost (Savings)
General Fund $3,268,715 $6,828,304 $7,132,119 $7,449,453
General Fund $3,268,715 $6,828,304 $7,132,119 $7,449,453
Fiscal Detail and Notes
The Retired Teachers' Health Insurance Program within the Department of Education will require General Fund appropriations of $3,268,715 in fiscal year 2023-24 and $6,828,304 in fiscal year 2024-25 for the costs associated with increasing the State's contribution to the retired teachers' cost of health insurance premiums from 55% to 60% in fiscal year 2023-24 and from 60% to 65% in fiscal year 2024-25.  The estimated cost of this bill, provided by the Office of Employee Health and Benefits, assumes an average increase in premiums of 4.45% 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.