Common use of Health Care Plan Reserves Fund Clause in Contracts

Health Care Plan Reserves Fund. The EMPLOYER will use $3,000,000 from the Health Care Plan Reserves Fund to offset the predicted 2016 premium cost increase of 7.9%. This action will allow for an additional 2.9% point reduction in premium cost. In combination with the 0.75% point reduction in premium cost gained through plan design changes discussed above, the end result is a 4.25% increase to premium costs. In 2017 and 2018, the EMPLOYER, in its sole discretion, will determine if and how many dollars from the Reserves Fund will be utilized.