Hause Monnin Consulting

GASB 43 and 45


Complying with GASB 43 and 45 requires health insurance experience and the ability to perform technical present value calculations.  Hause Monnin Consulting actuaries have considerable health insurance experience, including extensive consulting with self-insured health plans prior to the publication of GASB 43 and 45.  Hause Monnin Consulting  has reviewed the GASB material in its draft form and final work, and began working with our governmental clients in 2004 to assist them in the preparation for the reporting of liabilities as a result of GASB 43 and 45.


Hause Monnin Consulting has performed GASB 45 valuations for numerous cities and counties, including both self-insured and fully insured plans.  Many of these clients requested advice on changes to the health and retirement plan designs with the intent to reduce or eliminate the liabilities due to GASB 43 and 45.  We worked closely with our clients to design reasonable plan changes, often testing several options to show the effects of the changes to the liability.  Many of our clients implemented plan changes after our analysis, with some clients opting to make changes that completely eliminated the liability for future and/or current retirees.


One of the key areas in GASB 45 is the requirement that true medical costs be prefunded or accrued.  Hause Monnin Consulting believes it is appropriate to have the actual experience of the plan influence the choice of assumptions for future true medical cost.  Attempts could be made to shortcut this calculation, but Hause Monnin Consulting believes that this is not the appropriate way to handle the situation.  This involves actuarial analysis of the plan.


With our extensive experience in working with health insurance and governmental health plans, Hause Monnin Consulting provides an ideal vehicle for the analysis of liabilities related to GASB 43 and 45.