062607 Healthcare Terms
Terms
City Contribution
Annual budgeted amount for health care coverage for eligible employees
and retirees with 25 years of service or 5 years of service with work-related
disability (Explicit Subsidy)
Premium Rate
Annual Rate for coverage including City contribution and employee/retiree
payment
Actual Cost
Cost based on utilization or actual experience
Implicit Subsidy
Difference between actual cost of coverage and premium rate
Unfunded Liability
Future cost of retiree coverage specified under GASB 45 to be valuated
every two years based on current health care enrollment and plan design
as well as trends in contributions and costs
Annual Required Contribution
Unfunded Liability amortized up to 30 years and required by GASB45 to be
reported in City’s annual financial statement
Plans
HMO Basic PPO
PPO Retiree POS
Plan Tiers
E/R + Spouse
Employee/Retiree(E/R) Only
E/R + Minor
E/R + Family
E/R + Children
Double E/R
/Works in Progress/Healthcare PowerPoint for Susi