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Contributions will be deducted from the employee's paycheck on a pre-tax and bi-weekly basis. Effective January 2020,all employees participating in the City's health plans will contribute one of the following two amounts,whichever is greater: 1. $25.00 per month for employee only coverage;$25 per month for employee+l 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. Increases in Premiums Effective July 1,2009,the City will pay for any increase in the medical plan premiums up to a maximum of 15%annually of the lowest cost HMO family rate.The difference will be deducted from the employee's paycheck on a pre-tax basis. This amount will be in addition to the employee contributions outlined in section 16.1 A. 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 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(2)options will be HMOs and the other option will be a PPO.For the term of this agreement,the City agrees to continue to offer Kaiser as one of the HMO options. 16.2 Health and Medical Care—Retired Employees 24