Common use of Cost Changes Clause in Contracts

Cost Changes. For purposes of this section, "similar coverage" means coverage for the same category of benefits for the same individuals (e.g. family to family or single to single). For example, two plans that provide major medical coverage are considered to be similar coverage. For purposes of this definition, (1) a Health FSA is not similar coverage with respect to an accident or health plan; (2) an HMO and a PPO are considered to be similar coverage; and (3) coverage by another employer, such as a Spouse's or Dependent's employer may be treated as similar coverage if it otherwise meets the requirements of similar coverage. (NOTE: Dropping coverage is not permitted under the Plan due to changes in cost if an individual changes to an HMO or insurance company who currently provides coverage to the County.) 1. Increase or decrease for Insignificant Cost Changes. Participants are required to increase their elective contributions (by increasing salary reductions) to reflect insignificant increases in their required contribution for their benefit choices, and to decrease their elective contributions to reflect insignificant decreases in their required contribution. The Plan Administrator, in its sole discretion and on a uniform and consistent basis, will determine whether an increase or decrease is insignificant based upon all the surrounding facts and circumstances, including but not limited to the dollar amount or percentage of the cost change. The Plan Administrator, on a reasonable and consistent basis, will automatically implement this increase or decrease in affected employees' elective contributions on a prospective basis.