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Section 14. Health and Welfare Coverage 14.1 Hospital and Medical -Active Employees A. Contributions HMO family rate offered. During the term of this agreement, the City shall offer Kaiser as a health plan option. .. . ' . •. , 11 employees participating in the City's health plans will contribute one of the following two amounts, whichever is greater: 1. $25.00 per month 2. The difference between the family rate of the lowest cost HMO and the premium of the employee's more expensive plan selection. Contributions will be deducted from the employee's paycheck on a pre-tax and bi-weekly basis. Effective January 2019, all employees participating in the City's health plans will contribute one of the following amounts, whichever is greater: 1. $25.00 per month for employee only coverage; $25.00 per month for employee+1 coverage; or $50 per month for family coverage 2. The difference between the family rate of the lowest cost HMO and the premium of the employee's more expensive plan selection. Contributions will be deducted from the employee's paycheck on a pre-tax and bi-weekly basis. B. Plan Co-Pays The health maintenance organization(HMO) medical plans co-pays shall be ten dollars ($10) for office visits. The prescription drug co-pays shall be ten dollars ($10) for generic, fifteen dollars ($15) for brand and thirty-five dollars ($35) for non-formulary (the Kaiser HMO provides for a two-tier prescription drug plan). The Point of Service (POS) medical plan co- pays shall be fifteen dollars ($15) for office visits. The prescription drug co-pays shall be ten dollars ($10) for generic, twenty-five ($25) for brand and thirty-five dollars ($35) for non- formulary. C. Increases in Premiums During the term of this agreement, the City will pay for any increase in the medical plan premiums up to a maximum of 15% of the lowest cost HMO family rate. The difference will be deducted from the employee's paycheck on a pre-tax basis. In the event that the medical premium increase is less than 15%,the City's sole obligation is to pay the lower percentage increase. D. Changes to Plan Designs During the term of this Agreement, the City reserves the right to propose changes to the plan designs and co-pay structure in order to reduce costs to the City and employees. Changes to plan design shall be by mutual agreement. 14