Orange County NC Website
Anvchmwt 21ist would not be eligible ro retire wiN I S years ABC service writ <br />ages ]Q 69 and R mspeUively, if Nay worked m [hose dates. Thus Ne acs[ Nr <br />retiree heaN insurance coverage for these employee is the wst for individual <br />Medicare Supplement insomnce a~ the dime Ne employce b«omes eligible It haz <br />vo impaa[ on Ne group rate. <br />o Employees retiring before age 65 would be covered under Ne ABC BoaN's group <br />heaN Wsmance. Mr. Green advises Ne ABC Board could anticipate an impact of <br />about vine percent on its group redr« heaN insuran« rates for eazh such reN« <br />in addition to Ne cost for Ne coverege of the individual retiree. This is based on a <br />projection of Poe anticipated claims experirn<e. Socha rote impact woWd not be <br />experirn<ed upon fort oeveage, but on a subsequmt removal depending on Ne <br />aznial claims experience. <br />Eor example, employee three on Ne Attaclwem 21ist coWd retire at age 52 in <br />fscal year 200]-Og and be covered by Ne ABC retiree heelN huurm«, ifihe <br />employee completes l0 additional years of ABC Servi«. Based on this-inf W <br />year 200]-OS or iv Ne next year's removal - Ne ABC Board coWd anticipate a <br />rdne percent increa« W row cost £or group rniree heaN vuvrmrce, attribsnable to <br />this additional eligibility. Four of Ne xven employ«s coWd retie prior to age 65 <br />wiN IS years ABC service at dates ranging fiom 10 to 23 years N Ne future. <br />5. ABC Buden Impact ofCOVeraae for Ne Seven Emvlovees <br />It is not possible to esdmaze Ne specific (alma con which might be incurred by <br />unending Ne retiree heWN wsurance coverage to Ne seven employs. <br />o First it is rot possible to projat whether dre employces will ranain employed by <br />tlx ABC Board writ Ne dates mdirated since Ness mend n lean five and uD to <br />23 years in Ne future. It is likely Nat at least some of tie employees woWd nW <br />remmn wiN Ne ABC Board unril the retirement eligibility date is reazhN. <br />o Second even Sit is assumed duteach employ«remWw employed and reties on <br />Ne date indicated, is is rot possible to projat the con ofgroup health ivurev« <br />end MNicare $upplwevt Wurance az least five coal up to 2J y«rs N Ne fvnsre. <br />In terms ofcmrevt mats and rates, tie current ABC amual individual cost Eor <br />covered retiree: <br />a On Ne goup heelN imurence, renges from about $2640 to $5,900 depeMing on <br />Ne employ«'s sex and age for a retiree age 65 or yowger aM <br />o On Ne Medicare$upplemrntis abom 81680 for an employee age 65 or older. <br />AccoNing to ABC Director Pearson, Ne ABC Board's 199]-98 cost for retiree hea1N <br />insurance was 8],420 for Ne four cunem retirees. Of tie four current retirees: <br />