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Contributions will be deducted from the employee's paycheck on a pre-tax and bi-weekly basis. B. Increases in Premiums Effective July 1, 2011, 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. C. Plan Co -Pays Effective July 1, 2011, 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 Preferred Provider Organization (PPO) 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. 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. The City agrees to provide up to three (3) health plan options for employees and eligible dependents. At least two options will be HMOs and the other will be a PPO option. For the term of this agreement, the City agrees to continue to offer Kaiser as one of the HMO options. For the purpose of providing aforesaid health care coverage to eligible regular part-time employees including job share employees who average between twenty (20) and twenty- nine (29) hours per week, the City shall contribute an amount not to exceed fifty percent (50%) of the City's monthly contribution established for full time employees as set forth in the paragraph above. For regular part-time employees including job share employees who average between thirty (3 0) and thirty-nine (3 9) hours per week, the City shall contribute an amount not to exceed seventy-five percent (75%) of the City's monthly contribution above. 15.2 Hospital and Medical Care - Retiree A. Federal or State Legislation The City reserves the right to meet and confer with the Union for the purposes of coordinating retired employee's hospital and medical care in the event Federal or State legislation is implemented that effects retiree's medical insurance. -23-