Common use of Cost of Coverage Clause in Contracts

Cost of Coverage. The retired teacher who wishes to purchase continued healthcare coverage for himself/herself or for himself/herself and spouse, shall annually purchase such healthcare at the expected floating rate. The floating rate is typically established in June of each year. Increases in the rate paid for the purchase of healthcare shall not exceed 10%. For the purpose of the calculation of that 10% increase cap, the base rate shall be the expected floating rate in the first year of retirement. (A teacher who retired with a rate of $8,000 would pay no more than $8,800 in the second year of retirement and no more than $9,680 in the third year, etc.) If the increase in the rate is less than 10%, then the teacher would pay the full amount of the increase.

Cost of Coverage. The retired teacher who wishes to purchase continued healthcare coverage for himself/herself or for himself/herself and spouse, shall annually purchase such healthcare at the base year group expected floating rate. The floating rate is typically established in June of each year. Increases in the rate paid for the purchase of healthcare shall not exceed 10%. For the purpose of the calculation of that 10% increase cap, the base rate shall be the expected floating rate in the first year of retirement. (A teacher who retired with a rate of $8,000 would pay no more than $8,800 in the second year of retirement and no more than $9,680 in the third year, etc.) If the increase in the rate is less than 10%, then the teacher would pay the full amount of the increase.

Cost of Coverage. The retired teacher who wishes to purchase continued healthcare coverage for himself/herself or for himself/herself and spouse, shall annually purchase such healthcare at the expected base year group maximum floating raterate less $200 (for single coverage) or $400 (for two-party or family coverage). The floating rate is typically established in June of each year. Increases in the rate paid for the purchase of healthcare shall not exceed 10%. For the purpose of the calculation of that 10% increase cap, the base rate shall be the expected maximum floating rate in the first year of retirement. (A teacher who retired with a rate of $8,000 3,000 would pay no more than $8,800 3,300 in the second year of retirement and no more than $9,680 3,630 in the third year, etc.) If the increase in the rate is less than 10%, then the teacher would pay the full amount of the increase.