An Act To Increase the State Share of the Cost of Health Insurance for Retired Teachers
Maine Legislature, Session 129, LD 0178
Committee Amendment CA_A_H701 (House)
Amends: 20-A MRSA §13451

COMMITTEE AMENDMENT "fl" to H.P. 141, L.D. 178, Bill, "An Act To 
Increase the State Share of the Cost of Health Insurance for Retired Teachers" 
Amend the bill by striking out all of section 1 and inserting the following: 
'Sec. 1. 20-A MRSA §13451, sub-§3, as amended by PL 2013, c. 368, Pt. H, §3, 
is fmiher amended to read: 
3. Payment by State. 
The State shall pay a percentage of the retired teacher 
members' share of this insurance according to the following schedule: 
A. Thirty percent until July 1, 2002; 
B. Thirty-five percent,from July 1, 2002 to July 31, 2003; 
C. Forty percent from August 1, 2003 to December 31, 2005; arui 
D. Forty-five percent after December 31, 2005. from January 1, 2006 to June 30. 
2020;and 
E. Fifty-five percent after June 30. 2020. 
Except for individuals who are receiving or who have received retirement benefits under 
Title 5, section 17907 or 17929, for a teacher who retires after July 1, 2012, the State 
shall begin paying the percentage of the retired teacher member's share pursuant to this 
subsection when the retiree reaches normal retirement age. 
For the fiscal years ending June 30, 2012, June 30, 2013, June 30, 2014 and June 30, 
2015, the State's total cost for retired teachers' health insurance premiums is budgeted at 
the fiscal year 2010 11 funding level adjusted for projected membership grovlth. The 
increase in the State's total cost for retired teachers' health insurance premiums for fiscal 
years ending after June 30, 2015 is budgeted at no more than any percentage increase in 
the Consumer Priee Index as defined in Title 5, section 17001, subsection 9 plus 3%. A 
provider of a health insurance benefit plan for retired teachers must make available data 
related to the provider's premium costs and any related data as requested by the Executive 
Director of Health Insurance within the Department of Administrative and Financial 
Services.' 
COMMITTEE AMENDMENT 
COMMITTEEAMENDMENT'/("toH.P.141,L.D.178 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SUMMARY 
This amendment, which is the majority report of the committee, requires the State to 
pay 55% of a retired teacher's share of the premium for group accident and sickness or 
health insurance after June 30, 2020. 
FISCAL :-,;on: REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 02/24/20 ;?,;,;rac. 
LD 178 
LR 575(02) 
An Act To Increase the State Share of the Cost of Health Insurance for Retired Teachers 
Fiscal Note for Bill as Amended by Committee Amendment /fi{//--1 °) 
Committee: Education and Cultural Affairs 
Net Cost (Savings) 
General Fund 
Appropriations/ Allocations 
General Fund 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2019-20 
FY 2020-21 
$0 
$0 
$0 
$0 
Projections 
FY 2021-22 
$3,533,224 
$3,533,224 
Projections 
FY 2022-23 
$3,661,833 
$3,661,833 
This bill increases the State's contribution for retired teachers health insurance premiums from 45% to 55% beginning 
in fiscal year 2020-21, At the same time and unrelated to this bill, the Maine Education Association Benefit Tmst 
(MEABT) is transitioning from a Medicare companion plan to a Medicare Advantage Group plan effective July I, 
2020, significantly reducing the premiums for the over 8,300 people on this plan. The fiscal impact of this bill and the 
MEABT plan change for the 2020-2021 and 2022-2023 biennia is provided in the table below. The estimated savings 
to the State from the MEABT plan change is shown in colunm (b). The total cost associated with the increase in the 
State's contribution from 45% to 55% beginning in fiscal year 2020-21 is shown in column (f). The net cost of this 
bill and the plan change together are shown in column (g). 
-
. 
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(b) 
(c) 
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(C) 
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(g) 
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(o" c) 
(¢" a) 
FY20 $3LS13,l89 
$0 
S3l.S73, l89 
0A5 
SJ l.873-189 
so 
so 
.. 
FY21 
$32,2()6.961 
(S3JJ77A32) 
$29.189.533 
0.55 
$3:S.Ci76,095 
$().486,563 
S3.409,tH 
FY22 :SJJ,+11.,rn1 
(SJ. l 89,'150) 
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05:'i 
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$6. 722.67,1 
$3,533,224 
FY2J SJ,I, 6~S. 7 51 
($3.305.5¥1) 
S3I .J53.205 
0.55 
SJS"i;:W.5f.;.l 
S(i,967,J79 
$3,(l{)l,833 
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LR0575(02) - Fiscal Note - Page l of 2 
The Retired Teachers Health Insurance program is currently budgeted to receive $45.0 million in General Fund 
appropriations in both fiscal year 2019-20 and fiscal year 2020-21. Based on 8 months of actual expendih1re data, it is 
estimated that the State will pay approximately $31.9 million for its contribution for retired teachers health insurance 
premiums in fiscal year 2019-20. The State is also expected to apply $10.0 million of the General Fund appropriation 
towards the unfunded actuarial liability (UAL) of the retired teachers health insurance plan pursuant to Title 5, §286-
B, sub-§2, Given this information, expenditures for this program are expected to be less than current appropriations 
for fiscal year 2019-20 by approximately $3.1 million ($45.0 million - $41.9 million), For fiscal year 2020-21, 
however, when the $3.4 million cost of this provision and the plan change together (g) is added to the projected 
expendihll'es of $32.3 million (a) along with another $10.0 million being applied to the UAL, expendihll'es are 
projected to exceed appropriations by approximately $0.676 million ($45.0 million - 3.4 million - $32.3 million -
$10.0 million). Funds appropriated to the Retired Teachers Health Insurance program are transferred to the Retiree 
Health Insurance Fund, an internal services fund within the Department of Administrative and Financial Services. 
Unexpended funds in this Fund are carried forward into the next fiscal year and may be used to pay future premium 
costs or applied to the nonnal or UAL costs of the retired teachers health insurance plan. It is the intent that a portion 
of the $3.1 million in anticipated unexpended funds in fiscal year 2019-20 be used to cover the $676,000 cost in fiscal 
year 2020-21 and no additional funding is required in fiscal year 2020-21. 
LR0575(02) - Fiscal Note - Page 2 of2