Annual Report for 2014-FINAL (2) - page 5

Factors Affecting the Trust - (concluded)
Early Retirees.
Typically, retirees
who are not yet eligible for Medicare
have had a great effect on the costs of
retiree health benefit plans. These
plans generally pay more for the
health care of early retirees than for
the retirees with Medicare. As the
years have passed, the Trust’s costs
have also been affected by the
number of early retirees.
In 2014, early retirees accounted for
84% of new participants. These early
retirements have put ongoing
pressure on the Trust’s funds. This is
important to note because the cost to
the Trust of providing benefits to a
non-Medicare eligible participant is,
on average, more than five times
higher than the cost of providing
benefits to a participant who is
Medicare eligible.
There was an overall decline in the
Trust’s enrollment of 4% from 2013 to
2014. PPO enrollment decreased by
5.6% and the Indemnity enrollment
declined by 18%. PPO enrollment
represented 73% of the total non-
Medicare participants.
Affordable Care Act (ACA or Healthcare
As a retiree-only plan, the Trust is not
subject to certain rules set forth in the Patient
Protection and Affordable Care Act. For example,
retiree-only plans are not required to:
Offer free preventive health benefits;
Remove annual and lifetime limits on how much
they will spend on medical care;
Remove limits on emergency health care; or
Cover children.
However, the Trust has been impacted by ACA, and
in 2014, the Trust paid an assessment in the
amount of $30,764.00 to fund the Patient Centered
Outcomes Research Trust Fund (PCORF).
Declining Hours Worked.
In 1971,
there were approximately nine active
employees for each participant in the
Trust. Today, that ratio has dropped to
about one active employee for each
two participants in the Trust.
Decreasing numbers of hours worked
means decreasing contributions to the
Trust. The following chart shows the
dramatic drop in hours reported to the
1,2,3,4 6,7,8,9,10,11,12,13,14
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