HEALTH INSURANCE (CONTINUED. SECTION 2.
HEALTH INSURANCE (CONTINUED. All retirees retiring after May 27, 2009 and before March 2, 2019 must enroll in Medicare Parts A & B when they become eligible. Retirees shall be responsible for Medicare Part B premiums as established by the Federal Government; however, the City shall set up a program establishing a Health Care Savings Account (HSA) to allow employees to voluntarily fund themselves to pay for Part B premiums or other eligible medical expenses as determined by Internal Revenue Service’s regulations. All retirees retiring after July 1, 2013, and who are eligible for retiree health insurance as defined by this Collective Bargaining Agreement, shall receive the same prescription drug benefits afforded to active employees. Employees who retire on or after March 2, 2019 who are eligible for retiree health care shall mirror the active employee health care plan as well as the prescription drug benefits afforded to active employees. Upon the attainment of Medicare age, retired members who are eligible for retiree health care and who retire on or after March 2, 2019 shall be provided a $300 stipend per month per employee and per eligible spouse to purchase Medicare Supplemental insurance, at which point all City obligations shall cease. Effective with an open enrollment period as established and announced by the City after this Agreement is executed, the City shall offer to any member of the bargaining unit, who is eligible for retiree health care with less than twenty (20) years of credited service the option to participate in a retirement health care buy-out program. Should a member choose to participate, the City shall deposit $4,000 per year of credited service into a Retirement Health Care Savings (RHCS) Account, after which the employee shall be eligible to participate in the City’s RHCS for all future years of service in accordance with the provisions below and the City’s obligation to provide Retiree Health Care will be ended. For all eligible full-time employees hired after May 27, 2009, no retiree health insurance shall be provided. Such employees shall be provided with a Health Care Savings Program (HCSP). The City shall contribute $100 per month into the HSCP and the employee shall contribute 8% of his or her base salary on a tax-free basis. Effective September 14, 2015, for employees hired after July 1, 2009, the City’s contribution to the Health Care Savings Plan will be changed from $100 per month to an amount equal to 3% of the employee’s base wage per month. Sho...
HEALTH INSURANCE (CONTINUED. E) (1) The City of Madison Heights will continue to pay the premiums for the employee’s existing health plan for any full time member of the bargaining unit and family who is disabled and unable to work as a result of an injury arising out of the course of employment for a maximum period of two years.
HEALTH INSURANCE (CONTINUED. (2) If a retiree obtains employment elsewhere said retiree will have the option of obtaining hospitalization with the subsequent employer or retaining the coverage as enumerated above. In no event will the employee be allowed to retain two or more separate hospitalization plans. In the event the retiree obtains, at his option, hospitalization insurance elsewhere, there shall be no liability with the City. Upon termination of subsequent employment the retiree, after giving notice to the City, will resume with the City, retiree hospitalization insurance as was in effect at the time of his retirement.
HEALTH INSURANCE (CONTINUED. Effective with payroll check dated July 5, 2013 the City implemented 20% health care premium sharing for all full-time employees in accordance with Public Act (PA) 152, and Council Resolution passed at the Regular Meeting of December 17, 2012. Should PA 152 be repealed, the parties will renegotiate the impact. Effective with payroll check dated July 14, 2017 the City reduced the health care premium sharing for all full-time employees from 20% to 10%. The 10% premium sharing and PA 152 opt-out by City Council will continue for the next contract effective July 1, 2018 and will not be subject to change or negotiations during the term of that contract; however, the moratorium on these issues will be no more than three (3) years and will be subject to negotiation no later than June 30, 2020.
HEALTH INSURANCE (CONTINUED. SECTION 4.
HEALTH INSURANCE (CONTINUED. Effective February 10, 2014, the opt-out payment shall be increased to $3,000 paid annually with the same proration provisions as listed above. Members employed as of February 10, 2014 who have received the Fiscal Year 2013 opt-out payment at the previous rate of $2,400 shall receive an offset for the increased payment for Fiscal Year 2013 -14. The opt-out incentive will be paid annually on the 2nd pay in July. The "opt out" payment shall not be counted in final average compensation for the purpose of retirement.
HEALTH INSURANCE (CONTINUED. Effective March 10, 2014, the opt-out payment shall be increased to $3,000 paid annually subject to proration provisions as listed below. Members employed as of March 10, 2014 who have received the 2013 opt-out payment at the previous rate of $2,400 shall receive an offset for the increased payment for Fiscal Year 2013-14. The "opt out" incentive will be paid on the 2nd pay each July. An employee may elect to become reinstated to the City's health insurance plan prior to the next regular annual enrollment period if and only if he/she provides proof to the City that he/she has lost health insurance coverage or proof of a HIPAA qualifying event. In all cases where an employee who received the "opt out" payment wishes to become reinstated on the City's health insurance plan during the term of this Agreement, each "opt out" payment shall be amortized at a rate of $250 per month. For example, if the employee opted back on the City's plan on December 1, the employee would reimburse the City $1,750 ($250/month) for the period of December through June. The employee will be required to reimburse the City for advance payments of the opt out incentive for each month during which the employee will be covered under the City’s plan. The employee shall also reimburse the opt-out payment to the City according to the above schedule should his/her employment be terminated for any reason. The "opt out" payment shall not be counted in final average compensation for retirement purposes.
HEALTH INSURANCE (CONTINUED. (2) An employee may elect to become reinstated to the City's health insurance plan prior to the next regular annual enrollment period if and only if he/she provides proof to the City that he/she has lost health insurance coverage or proof of a HIPAA qualifying event. In all cases where an employee who received the "opt out" payment wishes to become reinstated on the City's health insurance plan during the term of this Agreement, each "opt out" payment shall be amortized at a rate of $250 per month. For example, if the employee opted back on the City's plan on December 1, the employee would reimburse the City $1,750 ($250/month) for the period of December through June. The employee will be required to reimburse the City for advance payments of the opt-out incentive for each month during which the employee will be covered under the City’s plan. The employee shall also reimburse the opt-out payment to the City according to the above schedule should his/her employment be terminated for any reason. The "opt out" payment shall not be counted in Final Average Compensation for retirement purposes.
HEALTH INSURANCE (CONTINUED. There will be a lens surcharge on heavy prescriptions when the lens power exceeds 10.00 diopters spherical and/or 4.00 diopters cylindrical. Glasses will be available to wearers of corrective lenses only. This plan does not cover outdoor tints (sunglasses).
