Comprehensive Annual Financial Report for the Fiscal Year Ended ... 2006

Cover Comprehensive Annual Financial Report for the Fiscal Year Ended ... 2006
Comprehensive Annual Financial Report for the Fiscal Year Ended ... 2006
Montana. Dept. of Administration. Accounting Division
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Based on amounts recorded through June 2006, expenditures of $8,678,927 were recognized for postemployment health care benefits. Of this amount, $6,248,223 was paid by retirees through premiums, and the balance of $2,430,704 was paid by the MUS.
As of July 1 , 2006, retirees can now choose a managed care option, if available, in their area. The managed care premiums are lower and there are more first dollar benefits. After an in-network deductible of $300, the plan reimburses 75% for the first
...$2,000 and 100% thereafter.
The managed care plans have a small enrollment (30 enroUees) for this first year offering to retirees.
For the fiscal year ending June 30, 2007, the State and the MUS will implement GASB Statement 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions. This statement requires the disclosure of the employer liability for retiree medical subsidies and other postemployment benefits. The annual required contribution (ARC) will be equal to an amount required each year to fully fund the liability over 30 years.


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