Why is the FY2010 base subsidy for retirees so much lower than the base subsidy for FY2009?
It is important to note that the FY2008 and FY2009 amounts did not reflect the change in policy in SB 544 (2007). This legislation was approved in the final days of the 2007 Legislative Session. SB 544 (2007) required that medical claims for Medicare retirees be rated separately from medical claims for non-Medicare participants. The impact on the subsidy was to increase the cost of active employees and reduce the cost of retirees. However, due to the timing of this policy change, the subsidy bill for 2007 was not modified, leaving it higher than it would have otherwise been.
