What is the Limit Reduction?

The amount of Gross Retiree Costs in excess of the Federally-defined Cost Limit is not eligible for the subsidy. This ineligible excess amount is referred to as the Limit Reduction. Gross Retiree Costs will be reduced by the Limit Reduction when calculating subsidy. The Limit Reduction amount must be calculated per Qualifying Covered Retiree and aggregated by Benefit Option and plan month.