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Section 14. Health and Welfare Coverage <br /> 14.1 Hospital and Medical- Active Employees <br /> A. Contributions <br /> During the term of this agreement, the City shall offer Kaiser as a health plan option. <br /> All employees participating in the City's health plans will contribute one of the following two <br /> amounts, whichever is greater: <br /> 1. $25.00 per month <br /> 2. The difference between the family rate of the lowest cost HMO and the premium of <br /> the employee's more expensive plan selection. <br /> Contributions will be deducted from the employee's paycheck on a pre-tax and bi-weekly basis. <br /> Effective January 2019, all employees participating in the City's health plans will contribute <br /> one of the following amounts, whichever is greater: <br /> 1. $25.00 per month for employee only coverage; $25.00 per month for employee +1 <br /> coverage; or$50 per month for family coverage <br /> 2. The difference between the family rate of the lowest cost HMO and the premium of <br /> the employee's more expensive plan selection. <br /> Contributions will be deducted from the employee's paycheck on a pre-tax and bi-weekly basis. <br /> B. Plan Co-Pays <br /> The health maintenance organization(HMO) medical plans co-pays shall be ten dollars ($10) <br /> for office visits. The prescription drug co-pays shall be ten dollars ($10) for generic, fifteen <br /> dollars ($15) for brand and thirty-five dollars ($35) for non-formulary (the Kaiser HMO <br /> provides for a two-tier prescription drug plan). The Point of Service (POS) medical plan co- <br /> pays shall be fifteen dollars ($15) for office visits. The prescription drug co-pays shall be ten <br /> dollars ($10) for generic, twenty-five($25) for brand and thirty-five dollars ($35) for non- <br /> formulary. <br /> C. Increases in Premiums <br /> During the term of this agreement,the City will pay for any increase in the medical plan <br /> premiums up to a maximum of 15%of the lowest cost HMO family rate. The difference will be <br /> deducted from the employee's paycheck on a pre-tax basis. <br /> In the event that the medical premium increase is less than 15%, the City's sole obligation is to <br /> pay the lower percentage increase. <br /> D. Changes to Plan Designs <br /> During the term of this Agreement, the City reserves the right to propose changes to the plan <br /> designs and co-pay structure in order to reduce costs to the City and employees. Changes to <br /> plan design shall be by mutual agreement. <br /> 16 <br />