Common use of Health and Hospitalization Clause in Contracts

Health and Hospitalization. The Town shall provide bargaining unit members with the choice to enroll in either the Lumenos plan or the AB15IPDED-RX 10/20/45 plan provided by HealthTrust for single, two person, or family coverages. Employees will provide to the Town, through equal weekly payroll deductions, an insurance premium cost sharing of the following amounts of the total monthly premium for that employee’s level of coverage: 12.5% for the Lumenos plan and 12.5% for the AB15IPDED plan. a) Employees who opt to enroll in the Lumenos plan are eligible to open a health savings account (“HSA”).For each year an employee is enrolled in the Lumenos plan the Town shall contribute as follows to his or her HSA account: On an annual basis, the Town shall contribute $2,000 for employees enrolled in family or two-person coverage, and $1,000 for employees enrolled in single coverage. The Town’s contributions shall be made in equal installments on a semiannual basis. Employees enrolled in the Lumenos plan may contribute to their HSA through payroll deduction. b) Employees enrolled in the AB15IPDED plan are not eligible to open an HSA account. Such employees are eligible, however, to participate in a medical expense reimbursement account, “Flexible Spending Account” (FSA), which provides for reimbursement of qualifying medical expenses per the provisions of the Internal Revenue Code and the Affordable Care Act. c) Employees may also enroll in AB10 – RX10/20/45 provided by HealthTrust for single, 2- person, or family coverage. The Town shall share the cost of enrollment in the AB10 – RX10/20/45 with participating employee up to the dollar value contributed by the Town to employees enrolled in the AB15IPDED plan, as set forth in Article XXV(1). The remainder of the premium cost for the AB10 – RX10/20/45 shall be paid by the employee through equal weekly payroll deductions. d) Employee contributions for premium costs of both medical and dental insurance shall be on a Section 125 pre-tax basis. e) Insurance Buy-out – Members hired on or before 11/10/04 may receive a buy-out (in lieu of health insurance) at rates in effect on July 1, 2007, which are $633.03 monthly for 2- person and $854.59 monthly for family. Members hired after 11/10/04 may receive an annualized buy-out of $2500 family, two-person, or single plan. This is available for employees who, upon proof of alternative employer-sponsored coverage, opt out of the Town’s plan. Buy-out shall be at the coverage level for which the employee is eligible with payments made monthly. f) Discussions will be held with the Union prior to any change of health insurance carrier. The Town reserves the sole and exclusive right to change carriers as long as such a change does not diminish the employee benefits mutually agreed upon. The parties agree to a re- opener limited to health insurance coverage / cost sharing if alternative plans/options are jointly agreed upon during the term of this Agreement. g) The Health and Hospitalization Insurance referred to above will be extended for a period of up to thirty-nine (39) weeks for covered employees during a period of layoff at the cost of the employee. Payments must be received by the Town by the first of each month. This benefit does not extend an employee’s COBRA eligibility period which is effective upon the date of separation. Note: Employees may select a single, two (2) person or family plan. h) The Town will provide Medi-Comp III coverage to employees who, upon reaching sixty-five (65) years of age and qualifying for retirement under the rules and regulations of the New Hampshire Retirement System, retire from employment with the Town, provided that such employees have worked for the Town a minimum of ten (10) years; except that all employees hired after contract signing, reaching age 65 and qualifying for retirement under the rules and regulations of the New Hampshire Retirement System will receive this benefit provided that such employees have worked for the Town a minimum of twenty (20) years. The amount of the subsidy for employees hired after contract signing shall be limited to the amount of the July 1, 2016 Medi-Comp premium.

Health and Hospitalization. The Effective January 1, 2017, the Town shall provide bargaining unit members with the choice to enroll in either the Lumenos plan or the AB15IPDED-RX 10/20/45 plan provided by HealthTrust for single, two person, or family coverages. Employees will provide to the Town, through equal weekly payroll deductions, an insurance premium cost sharing of the following amounts of the total monthly premium for that employee’s level of coverage: 12.5% for the Lumenos plan and 12.5% for the AB15IPDED plan. a) Employees who opt to enroll in the Lumenos plan are eligible to open a health savings account (“HSA”).For HSA”), except as stipulated below. During the term of this contract, for each year an employee is enrolled in the Lumenos plan the Town shall contribute as follows to his or her HSA account: On an annual : a. In 2017, the Town shall contribute $2,500 for employees enrolled in family or two- person coverage, and $1,250 for employees enrolled in single coverage. The Town’s contributions shall be made in equal installments on a semiannual basis. b. In 2018, the Town shall contribute $2,500 for employees enrolled in family or two- person coverage, and $1,250 for employees enrolled in single coverage. The Town’s contributions shall be made in equal installments on a semiannual basis. c. In 2019, the Town shall contribute $2,500 for employees enrolled in family or two- person coverage, and $1,250 for employees enrolled in single coverage. The Town’s contributions shall be made on a semiannual basis. d. In 2020, the Town shall contribute $2,000 for employees enrolled in family or two-two- person coverage, and $1,000 for employees enrolled in single coverage. The Town’s contributions shall be made in equal installments on a semiannual basis. e. In 2021, the Town shall contribute $2,000 for employees enrolled in family or two- person coverage, and $1,000 for employees enrolled in single coverage. The Town’s contributions shall be made in equal installments on a semiannual basis. Employees enrolled in the Lumenos plan may contribute to their HSA through payroll deduction, but not in excess of the amount that would cause the health insurance plan to be subject to the Cadillac Tax after consideration of the total premium cost for the Lumenos plan and the amount of the Town’s contribution to the HSA, as stipulated above. Upon the effective date of the Cadillac Tax, the Town shall annually notify employees enrolled in the Lumenos plan of the employees HSA contribution limit pursuant to this provision. If, in any year of the contract, the combination of the total premium cost for the Lumenos plan and the HSA contribution as stipulated above will cause the health insurance plan to be subject to the Cadillac Tax, the Town’s HSA contribution will be reduced by the amount necessary to prevent the plan from becoming subject to the Cadillac Tax. In the event such a reduction is necessary, the Town will provide affected employees with a wage stipend in an amount equal to the reduction amount. Town HSA contributions in effect on June 30, 2021 shall remain frozen at those rates until such time as a successor agreement is reached. b) Employees enrolled in the AB15IPDED plan are not eligible to open an HSA account. Such employees are eligible, however, to participate in a medical expense reimbursement account, “Flexible Spending Account” (FSA), which provides for reimbursement of qualifying medical expenses per the provisions of the Internal Revenue Code and the Affordable Care Act. c) Employees may also enroll in AB10 – RX10/20/45 R$3/15M$3/7 provided by HealthTrust for single, 2- 2-person, or family coverage. The Town shall share the cost of enrollment in the AB10 – RX10/20/45 R$3/15M$3/7 with participating employee up to the dollar value contributed by the Town to employees enrolled in the AB15IPDED plan, as set forth in Article XXV(1). The remainder of the premium cost for the AB10 – RX10/20/45 R$3/15M$3/7 shall be paid by the employee through equal weekly payroll deductions. In the event that any portion of the AB10 – R$3/15M$3/7 will trigger the application of the so-called “Cadillac Tax,” as it may be amended, the Town shall unilaterally discontinue offering the AB10 – R$3/15M$3/7 for employee enrollment and shall have no obligation to engage in impact bargaining related to its discontinuance. d) Employee contributions for premium costs of both medical and dental insurance shall be on a Section 125 pre-tax basis. e) Insurance Buy-out – Members hired on or before 11/10/04 may receive a buy-out (in lieu of health insurance) at rates in effect on July 1, 2007, which are $633.03 monthly for 2- person and $854.59 monthly for family. Members hired after 11/10/04 may receive an annualized buy-out of $2500 family, family and $2500 two-person, or single plan. This is available for employees who, upon proof of alternative employer-sponsored coverage, opt out of the Town’s plan. Buy-out shall be at the coverage level for which the employee is eligible with payments made monthly. f) Discussions will be held with the Union prior to any change of health insurance carrier. The Town reserves the sole and exclusive right to change carriers as long as such a change does not diminish the employee benefits mutually agreed upon. The parties agree to a re- re-opener limited to health insurance coverage / cost sharing if alternative plans/options are jointly agreed upon during the term of this Agreement. g) The Health and Hospitalization Insurance referred to above will be extended for a period of up to thirty-nine (39) weeks for covered employees during a period of layoff at the cost of the employee. Payments must be received by the Town by the first of each month. This benefit does not extend an employee’s COBRA eligibility period which is effective upon the date of separation. Note: Employees may select a single, two (2) person or family plan. h) The Town will provide Medi-Comp III M coverage to employees who, upon reaching sixty-five (65) years of age and qualifying for retirement under the rules and regulations of the New Hampshire Retirement System, retire from employment with the Town, provided that such employees have worked for the Town a minimum of ten (10) years; except that all employees hired after contract signing, reaching age 65 and qualifying for retirement under the rules and regulations of the New Hampshire Retirement System will receive this benefit provided that such employees have worked for the Town a minimum of twenty (20) years. The amount of the subsidy for employees hired after contract signing shall be limited to the amount of the July 1, 2016 Medi-Comp premium. i) Notwithstanding the foregoing, the Town and the Union agree that if any portion of the parties’ negotiated health insurance plan, other than the AB10 – R$3/15M$3/7 as set forth in Art. XXV(1)(c), will trigger the application of the so-called “Cadillac Tax,” as it may be amended, the parties shall also follow the procedure below: i. It is agreed that the Town or Union may immediately reopen this Agreement solely for the purpose of negotiating any changes in the health insurance plan that may be necessary to avoid the application of the Cadillac Tax to the Town or any plan administrator, insurer, risk pool or plan participant, or to assure that the plan is legally compliant. An initial bargaining session shall be held within ten (10) business days of a request to reopen, unless another schedule is agreed to by the parties. The Town shall assist the Union in obtaining plan design and pricing information from insurance providers. ii. If within ninety (90) days of either party’s request to reopen this Agreement, the parties are unable to agree on changes in the health insurance plan necessary to avoid the Cadillac Tax and/or achieve legal compliance, then the issue shall be submitted to expedited binding interest arbitration. The interest arbitration shall proceed as follows: 1. The parties agree that the special nature of this issue may require an arbitrator with specific knowledge of the Affordable Care Act; therefore, the parties will make every effort to mutually agree on an arbitrator with such specialized knowledge. If the parties cannot agree upon an arbitrator, an arbitrator shall be selected using the procedures described in Article X(2)(Step 4). 2. The interest arbitration hearing shall be held no later than thirty (30) days after either party declares that the reopened negotiations on health insurance are at impasse, unless otherwise agreed to by the parties. 3. The Town and the Union shall each submit to the selected arbitrator a proposal for modifying the negotiated health insurance which shall avoid the Cadillac Tax. The Town and the Union shall exchange their proposals not less than ten (10) days prior to the arbitration hearing. 4. The arbitrator shall be empowered to select either the Town’s proposal or the Union’s proposal (“final offer” arbitration) and is expressly not empowered to fashion his or her own modifications to the negotiated health insurance plan.