How are health benefits costs calculated in relation to employee contributions?

The calculation of health benefits costs in relation to employee contributions is done on a net basis. This means that when determining the overall cost of health benefits, the contributions made by employees are subtracted from the total costs incurred by the municipality for providing those benefits.

By calculating the costs net of employee contributions, municipalities can clearly see how much they are spending on health benefits after accounting for the financial input from employees. This approach allows for a more accurate reflection of the employer's actual expense and aids in budget planning and forecasting.

Understanding that costs are typically communicated in this net way aligns with standard budgeting practices, which aim to provide clarity regarding how contributions impact overall expenses. It also helps in making informed decisions about future funding and contributions based on a realistic assessment of the financial landscape for health benefits.