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2008 Session

Budget Amendments - HB30 (Committee Approved)

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Adjust Inflation Assumptions for State Employee Health Plan

Item 472 #3h

Item 472 #3h

First Year - FY2009 Second Year - FY2010
Procedures for Prepayment of Civil Penalties in an Executive Order
Central Appropriations FY2009 ($3,836,821) FY2010 $850,670 GF

Language
Page 421, line 46, strike "$23,190,703" and insert "$19,353,882".
Page 421, line 46, strike "$141,605,634" and insert "$142,456,304".
Page 423, strike lines 55 through 57.
Page 424, strike lines 1 through line 36.
Page 424, line 37, strike "H.1." and insert "G.1."
Page 426, line 16, strike "G." and insert "H."
Page 427, line 2, strike "$19,111,711 the first year and $14,757,282" and insert:
"$15,274,890 the first year and $15,607,952".
Page 427, strike lines 14 through 33.
Page 427, line 34, strike "4." and insert "3."


Explanation
(This amendment adjusts the funding included in the introduced budget for increases in the employer share of the insurance premiums for the state employee health insurance program. The introduced budget assumed an 8 percent rate of inflation with a net increase of 5.28 percent for fiscal year 2009, after other adjustments, with a 3.99 percent for fiscal year 2010. The fiscal year 2009 amount in the introduced budget was higher than the 2010 amount because the introduced budget funded the second year of the phase-in of the proposal to fund early retiree health benefits on an actuarial basis but limited to the funding to the first year of the biennium. The amendment adjusts funding based on an assumed 6 percent inflation adjustment and an assumption the Commonwealth is reverting to the policy of funding health care benefits for all beneficiaries using the practices in place prior to fiscal year 2008. The amended budget assumes a net premium adjustment of 4.22 percent effective July 1, 2008.)