Common use of Fixed Costs Clause in Contracts

Fixed Costs. Because of the methodology using the 15% margin in the Funding Level formula above and plan experience for the plan ending June 30, 2014, the Funding Rates for July 1, 2014 shall increase 0% from the July 1, 2013 Funding Rates. Effective January 1, 2015 Dental = Fully insured rate as set forth by the dental insurance carrier Vision = Fully insured rate as set forth by the vision insurance carrier For the Fiscal Year beginning July 1, 2015: Medical = Expected Claims Liability + (Expected Claims Liability x 7-1/2%) + Fixed Costs. Rx = Expected Claims Liability + (Expected Claims Liability x 7-1/2%) + Fixed Costs Dental = Fully insured rate as set forth by the dental insurance carrier Vision = Fully insured rate as set forth by the vision insurance carrier Because of the methodology using the 15% margin in the July 1, 2014 Funding Level formula above and a 7-1/2% margin in the July 1, 2015 Funding Level, the Funding Rates for the July 1, 2015 plan year are guaranteed not to exceed a 5.5% increase over the July 1, 2014 plan year Funding Rates. For the Fiscal Year beginning July 1, 2016: Medical = Expected Claims Liability + (Expected Claims Liability x 3-3/4%) + Fixed Costs. Rx = Expected Claims Liability + (Expected Claims Liability x 3-3/4%) + Fixed Costs Dental = Fully insured rate as set forth by the dental insurance carrier Vision = Fully insured rate as set forth by the vision insurance carrier APPENDIX H:

Fixed Costs. Because of the methodology using the 15% margin in the Funding Level formula above and plan experience for the plan ending June 30, 2014, the Funding Rates for July 1, 2014 shall increase 0% from the July 1, 2013 Funding Rates. Effective January 1, 2015 Dental = Fully insured rate as set forth by the dental insurance carrier Vision = Fully insured rate as set forth by the vision insurance carrier For the Fiscal Year beginning July 1, 2015: Medical = Expected Claims Liability + (Expected Claims Liability x 7-1/2%) + Fixed Costs. Rx = Expected Claims Liability + (Expected Claims Liability x 7-1/2%) + Fixed Costs Dental = Fully insured rate as set forth by the dental insurance carrier Vision = Fully insured rate as set forth by the vision insurance carrier Because of the methodology using the 15% margin in the July 1, 2014 Funding Level formula above and a 7-1/2% margin in the July 1, 2015 Funding Level, the Funding Rates for the July 1, 2015 plan year are guaranteed not to exceed a 5.5% increase over the July 1, 2014 plan year Funding Rates. For the Fiscal Year beginning July 1, 2016: Medical = Expected Claims Liability + (Expected Claims Liability x 3-3/4%) + Fixed Costs. Rx = Expected Claims Liability + (Expected Claims Liability x 3-3/4%) + Fixed Costs Dental = Fully insured rate as set forth by the dental insurance carrier Vision = Fully insured rate as set forth by the vision insurance carrier APPENDIX H:Because of the methodology using the 15% margin in the July 1, 2014 Funding Level formula above, a 7-1/2% margin in the July 1, 2015 Funding Level, and a 3-3/4% margin in the July 1, 2016 Funding Level, the Funding Rates for the July 1, 2016 plan year are guaranteed not to ex- ceed a 5.5% increase over the July 1, 2015 plan year Funding Rates maximum. Funding Rates are based on a structure that includes Employee Only; Employee + One Dependent; and Family (Employee + two or more dependents). Expected Claim Liability is determined by the stop loss carrier and/or Third Party Administrator (TPA) for the Contract Period, and/or actuary for the health care consultant. Actual Costs = Paid Claims + Fixed Costs – Prescription Drug Rebates Fixed Costs = Administrative Costs + Stop Loss Premiums Appendix D: Insurance Benefits (Continued) Funding Level/Rates Calculations The July, 2014 - June, 2015 Funding Level and Funding Rates have already been established using the Fully Insured Equivalent and will not be recalculated until July 1, 2015 Funding Rates for the medical, prescription drug, dental and vision plans each July 1st, will be determined using the formulas identified above to calculate Funding Level.

Fixed Costs. Because of the methodology using the 15% margin in the Funding Level formula above and plan experience for the plan ending June 30, 2014, the Funding Rates for July 1, 2014 shall increase 0% from the July 1, 2013 Funding Rates. Effective January 1, 2015 Dental = Fully insured rate as set forth by the dental insurance carrier Vision = Fully insured rate as set forth by the vision insurance carrier For the Fiscal Year beginning July 1, 2015: Medical = Expected Claims Liability + (Expected Claims Liability x 7-1/2%) + Fixed Costs. Rx = Expected Claims Liability + (Expected Claims Liability x 7-1/2%) + Fixed Costs Dental = Fully insured rate as set forth by the dental insurance carrier Vision = Fully insured rate as set forth by the vision insurance carrier Because of the methodology using the 15% margin in the July 1, 2014 Funding Level formula above and a 7-1/2% margin in the July 1, 2015 Funding Level, the Funding Rates for the July 1, 2015 plan year are guaranteed not to exceed a 5.5% increase over the July 1, 2014 plan year Funding Rates. For the Fiscal Year beginning July 1, 2016: Medical = Expected Claims Liability + (Expected Claims Liability x 3-3/4%) + Fixed Costs. Rx = Expected Claims Liability + (Expected Claims Liability x 3-3/4%) + Fixed Costs Dental = Fully insured rate as set forth by the dental insurance carrier Vision = Fully insured rate as set forth by the vision insurance carrier APPENDIX H:Because of the methodology using the 15% margin in the July 1, 2014 Funding Level formula above, a 7-1/2% margin in the July 1, 2015 Funding Level, and a 3-3/4% margin in the July 1, 2016 Funding Level, the Funding Rates for the July 1, 2016 plan year are guaranteed not to exceed a 5.5% increase over the July 1, 2015 plan year Funding Rates maximum. Effective July 1, 2017: Medical = Expected Claims Liability + (Expected Claims Liability x 3-3/4%) + Fixed Costs. Rx = Expected Claims Liability + (Expected Claims Liability x 3-3/4%) + Fixed Costs Dental = Fully insured rate as set forth by the dental insurance carrier Vision = Fully insured rate as set forth by the vision insurance carrier Funding Rates are based on a structure that includes Employee Only; Employee + One Dependent; and Family (Employee + two or more dependents). Expected Claim Liability is determined by the stop loss carrier and/or Third Party Administrator (TPA) for the Contract Period, and/or actuary for the health care consultant. Actual Costs = Paid Claims + Fixed Costs – Prescription Drug Rebates Fixed Costs = Administrative Costs + Stop Loss Premiums Funding Rates for the medical, prescription drug, dental and vision plans each July 1st, will be determined using the formulas identified above to calculate Funding Level.