"In the most extreme case, let's consider a small plan sponsor in a pooled health plan where retirees pay 100% of the premiums. Under GASB 45 and the previous version of ASOP 6, this entity would not have any OPEB liability, because retirees are paying the entire premium and the community-rating exception allowed for the implicit rate subsidy to be ignored. Under the new ASOP 6 and GASB 74/75, the entity will have a liability due to the 'implicit rate subsidy,' which must now be recognized even in community-rated plans.Another type of plan where the impact will be large is one where the sponsor contributes a flat dollar amount per month to retirees in a pooled health plan."  MORE >>