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2. The difference between the family rate of the lowest cost HMO and the <br /> premium of the employee's more expensive plan selection. <br /> Contributions will be deducted from the employee's paycheck on a pre-tax <br /> and bi-weekly basis. <br /> B. Increases in Premiums <br /> The City will pay for any increase in the medical plan premiums up to a <br /> maximum of 15% annually of the lowest cost HMO family rate. Any premium <br /> increase above 15% will be deducted from the employee's paycheck on a pre- <br /> tax basis. <br /> In the event that the medical premium increase is less than 15%, the City's sole <br /> obligation is to pay the lower percentage increase. <br /> C. Plan Co-Pays <br /> The health maintenance organization (HMO) medical plans co-pays shall be ten <br /> dollars ($10) for office visits. The prescription drug co-pays shall be ten dollars <br /> ($10) for generic, fifteen dollars ($15) for brand and thirty-five dollars ($35) for <br /> non-formulary (the Kaiser HMO provides for a two-tier prescription drug <br /> plan). The Preferred Provider Organization (PPO) medical plan co-pays shall <br /> be fifteen dollars ($15) for office visits. The prescription drug co-pays shall be <br /> ten dollars ($10) for generic, twenty-five ($25) for brand and thirty-five dollars <br /> ($35) for non-formulary. <br /> D. Changes to Plan Designs <br /> The City reserves the right to make changes to the medical plan designs. <br /> 5.3 Retiree Medical Benefit Eligibility <br /> Employees who retire from the City of Pleasanton under the California Public <br /> Employees Retirement System ("CaIPERS"), Government Code Section 20000 et <br /> seq.,are eligible for retiree medical benefits. Retirement from the City of Pleasanton <br /> means a retirement effective date through CaIPERS no more than 120 calendar days <br /> Page 8 of 44 <br />