What are Estimated Premiums?

Estimated Premiums cannot be submitted in final costs during Reconciliation. Actual gross costs must be reported at the time of Reconciliation. Estimated percentage of premiums is the portion of premium costs (excluding administrative costs, risk charges, etc.) paid by the Plan Sponsor and by the Qualifying Covered Retiree that, based on a determination by the insurer using reasonable actuarial principles, is allocated to Gross Retiree Costs between the Cost Threshold and the Cost Limit.