RES 08235 - Laserfiche WebLink

Section 14. Health and Welfare Coverage 14.1 Hospital and Medical -Active Emplovees A. Contributions The City will continue to contribute a monthly amount for each employee no greater than the Kaiser Family rate. Effective July 1, 2009, the City will contribute a monthly amount for each employee no greater than the lowest cost HMO family rate offered. During the term of this agreement, the City shall offer Kaiser as a health plan option. B. Plan Co-Pays Effective July 1, 2009 the health maintenance organization (HMO) medical plans co-pays shall be changed to ten dollars ($10) for office visits. The prescription drug co-pays shall be changed to ten dollars ($10) for generic, fifteen dollars ($15) for brand and thirty-five dollars ($35) for non-formulary (the Kaiser HMO provides for atwo-tier prescription drug plan). The Point of Service (POS) medical plan co-pays shall be changed to fifteen dollars ($15) for office visits. The prescription drug co-pays shall be changed to ten dollars ($10) for generic, twenty- five ($25) for brand and thirty-five dollars ($35) for non-formulary. C. Increases in Premiums Effective July 1, 2010, 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 through May 31, 2011. This provision shall not be effective beyond the term of this MOU, unless mutually agreed upon by both parties. 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. 14.2 Hospital and Medical -Retired Emplovees A. Federal or State Legislation Plan Design The City reserves the right to meet and confer with the Association for the purposes of coordinating retired employees hospital and medical care in the event Federal or State legislation is implemented that effects retiree's medical insurance. B. Benefits for Medicare Eligible Retirees All retirees eligible for Medicare are required to apply for benefits when eligible to remain on the City's group health plans. Upon qualifying for and receiving parts A and B of Medicare, the City shall not be obligated to contribute a monthly amount in excess of the monthly premium for the Kaiser supplement to Medicare Health Plan through June 30, 2009. For employees who retire after July 1, 2009, the City shall not be obligated to contribute a monthly 16