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

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 carriercarrier 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.