Common use of HEALTH INSURANCE (CONTINUED Clause in Contracts

HEALTH INSURANCE (CONTINUED. For all members hired on or after July 1, 2009, no retiree health insurance will be provided. In lieu of health insurance, the employee shall receive a Health Care Savings Plan (HCSP) into which the City will contribute $100 per month and the employee shall contribute 8% of base salary. Effective July 1, 2015, City contribution to the HCSP for new Command Officers promoted into the bargaining unit with an existing HCSP as a new hire under his or her previous Collective Bargaining Agreement shall be increased from $100 per month to 3% of an employee’s base pay. Upon termination of employment with the City, for any reason, the employee contribution portion of the HCSP shall be available for use on a tax-free basis for any medically related expense as permitted under IRS regulations. The employer contribution portion shall be available to the employee after a seven (7) year vesting period. Upon separation from employment with ten (10) or more years of service, the employee shall contribute 100% unused vacation or unused sick leave payable under Article XIV Section 1 and Article XV Section 8 respectively, into the HCSP account, with no withholding taxes, including FICA and Medicare, as allowable under IRS rules. Retirees after July 1, 2011 must enroll in Medicare Parts A & B when they become eligible, at the retiree’s sole expense. Full term retirement being defined as twenty-five (25) years of service with the City shall be interpreted to include any years of service which have been purchased by employees for years spent as a police cadet for the City of Madison Heights. A) 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 retiree be allowed to retain two or more separate hospitalization plans. In the event the retiree obtains, at his/her 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/her retirement. The City of Madison Heights shall provide the health care above for an individual who retires under a duty connected disability and their allowable dependant. B) Should the spouse or retiree be employed elsewhere and health insurance is provided to the spouse or retiree, equal to or greater than that provided to the retiree, the City will have no liability for hospitalization insurance. In the event the spouse or retiree terminates employment, the City after notice, will resume hospitalization coverage as enumerated above at the time of retirement. C) The City shall continue to provide hospitalization insurance to the spouse, upon the death of a retiree retiring on or after October 1, 1991, unless the spouse shall remarry. If the spouse of a retiree, entitled to continued hospitalization insurance coverage under this subsection upon the retiree's death, obtains employment elsewhere following the retiree's death, said spouse shall have the option of obtaining hospitalization insurance with the subsequent employer or retaining the coverage enumerated above. In no event will the spouse be allowed to retain two or more separate hospitalization insurance plans. In the event the spouse obtains, at the spouse's option, hospitalization insurance elsewhere, there shall be no liability with the City. Upon termination of

HEALTH INSURANCE (CONTINUED. (A) For the period prior to July 1, 2004, the City shall pay the full cost of the current Delta Dental program. The basic coverage as herein provided is Class I benefit, basic dental services 75%; Class II benefit, prosthodontic dental services 75%. The maximum benefit per person per contract year is $1,000 for Class I and Class II benefits. (B) Effective July 1, 2004, the City shall provide Delta Dental Premier dental program coverage to employees and dependents (spouse and eligible children). Coverage as herein provided is Class I benefit basic dental services, Class II benefit, periodontic/endodontic dental services, and Class III benefit prosthodontic dental services, each at 85% in-network and 75A% out-of-network. The City will provide Class IV, orthodontia services, 50% with a maximum lifetime benefit of $1,000. The maximum benefit per person per contract year is $1,500 for Class I, II and III benefits. SECTION 5. For the period prior to May 10, 2004, the City of Madison Heights shall, at the retiree’s option, assume the full cost of Blue Care Network or Blue Cross/Blue Shield insurance for MVF-1, semi-private XXX xxxxx, prescription drug rider, and for master medical insurance for all members hired full term retirees and their spouses for employees retiring on or after July 1, 2009, no retiree health insurance will be provided. In lieu of health insurance, the employee shall receive a Health Care Savings Plan (HCSP) into which the City will contribute $100 per month and the employee shall contribute 8% of base salary. Effective July 1, 2015, City contribution to the HCSP for new Command Officers promoted into the bargaining unit with an existing HCSP as a new hire under his or her previous Collective Bargaining Agreement shall be increased from $100 per month to 3% of an employee’s base pay. Upon termination of employment with the City, for any reason, the employee contribution portion of the HCSP shall be available for use on a tax-free basis for any medically related expense as permitted under IRS regulations. The employer contribution portion shall be available to the employee after a seven (7) year vesting period. Upon separation from employment with ten (10) or more years of service, the employee shall contribute 100% unused vacation or unused sick leave payable under Article XIV Section 1 and Article XV Section 8 respectively, into the HCSP account, with no withholding taxes, including FICA and Medicare, as allowable under IRS rules. Retirees after July 1, 2011 must enroll in Medicare Parts A & B when they become eligible, at the retiree’s sole expense1981. Full term retirement being shall be defined as twenty-five (25) years of service with the City shall be interpreted to include any years of service which have been purchased by employees for years spent as a police cadet for the City of Madison Heightsservice. A) If A. Upon the death of a retiree obtains employment elsewhere said retiree will have retiree, retiring on or prior to December 31, 1989, the option of obtaining hospitalization with the subsequent employer or retaining the coverage as enumerated above. In no event will the retiree be allowed City’s obligation to retain two or more separate hospitalization plans. In the event the retiree obtains, at his/her option, provide 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/her retirement. The City of Madison Heights shall provide the health care above for an individual who retires under a duty connected disability and their allowable dependant. B) Should the spouse or retiree be employed elsewhere and health insurance is provided to the spouse or retiree, equal to or greater than that provided to the retiree, the City will have no liability for hospitalization insuranceshall cease. In the event the spouse or retiree terminates employment, the City after notice, will resume hospitalization coverage as enumerated above at the time of retirement. C) The City shall continue to provide hospitalization insurance to the spouse, upon the death of a retiree retiring on or after October January 1, 19911990, unless the spouse shall remarry. If the spouse of a retiree, entitled to continued hospitalization insurance coverage under this subsection upon the retiree's ’s death, obtains employment elsewhere following the retiree's ’s death, said spouse shall have the option of obtaining hospitalization insurance with the subsequent employer or retaining the coverage enumerated above. In no event will the spouse be allowed to retain two or more separate hospitalization insurance plans. In the event the spouse obtains, at the spouse's ’s option, hospitalization insurance elsewhere, there shall be no liability with the City. Upon termination ofof subsequent employment the spouse, after giving notice to the City, may resume with the City, retiree hospitalization insurance as was in effect at the time of the retiree’s retirement.

HEALTH INSURANCE (CONTINUED. For all eligible members hired by the City before July 1, 2009, and retiring before March 30, 2011 or on or after January 1, 2012, the City will provide health insurance coverage to the retiree’s spouse at the time of retirement only. The City will extend health insurance to eligible dependents as of the effective date of retirement only up to the age of 25, with the retiree paying the full cost of the difference between couple or single coverage applicable at the time of retirement and the cost to provide for the eligible dependent. For all members hired on or after July 1, 2009, no retiree health insurance will be provided. In lieu of health insurance, the employee shall receive a Health Care Savings Plan (HCSP) into which the City will contribute $100 per month and the employee shall contribute 85% of base salary. Effective July September 1, 2015, City for employees hired after July 1, 2009, the City’s contribution to the HCSP for new Command Officers promoted into the bargaining unit with an existing HCSP as a new hire under his or her previous Collective Bargaining Agreement shall Health Care Savings Plan will be increased changed from $100 per month to an amount equal to 3% of an the employee’s base paywage per month. Upon termination of employment with the City, for any reason, the employee contribution portion of the HCSP shall be available for use on a tax-free basis for any medically related expense as permitted under IRS regulations. The employer contribution portion shall be available to the employee after a seven 7 year vesting period. Effective July 1, 2017, the employer contribution portion shall be available to the employee after a five (75) year vesting period. Upon separation from employment with ten (10) or more years of service, the employee shall contribute 100% unused vacation or unused sick leave payable under Article XIV Section 1 and Article XV Section 8 respectively, into the HCSP account, with no withholding taxes, including FICA and Medicare, as allowable under IRS rules. Retirees after July 1, 2011 must enroll in Medicare Parts A & B when they become eligible, at the retiree’s sole expense. Full term retirement being defined as twenty-five (25) years of service with the City shall be interpreted to include any years of service which have been purchased by employees for years spent as a police cadet for the City of Madison Heights. A) If A. Upon the death of a retiree obtains employment elsewhere said retiree will have retiree, retiring on or prior to December 31, 1989, the option of obtaining hospitalization with the subsequent employer or retaining the coverage as enumerated above. In no event will the retiree be allowed City’s obligation to retain two or more separate hospitalization plans. In the event the retiree obtains, at his/her option, provide 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/her retirement. The City of Madison Heights shall provide the health care above for an individual who retires under a duty connected disability and their allowable dependant. B) Should the spouse or retiree be employed elsewhere and health insurance is provided to the spouse or retiree, equal to or greater than that provided to the retiree, the City will have no liability for hospitalization insuranceshall cease. In the event the spouse or retiree terminates employment, the City after notice, will resume hospitalization coverage as enumerated above at the time of retirement. C) The City shall continue to provide hospitalization insurance to the spouse, upon the death of a retiree retiring on or after October January 1, 19911990, unless the spouse shall remarry. If the spouse of a retiree, entitled to continued hospitalization insurance coverage under this subsection upon the retiree's ’s death, obtains employment elsewhere following the retiree's ’s death, said spouse shall have the option of obtaining hospitalization insurance with the subsequent employer or retaining the coverage enumerated above. In no event will the spouse be allowed to retain two or more separate hospitalization insurance plans. In the event the spouse obtains, at the spouse's ’s option, hospitalization insurance elsewhere, there shall be no liability with the City. Upon termination ofof subsequent employment the spouse, after giving notice to the City, may resume with the City, retiree hospitalization insurance as was in effect at the time of the retiree’s retirement. B. If a retiree obtains employment elsewhere, said retiree shall have the option of obtaining hospitalization insurance with the subsequent employer or retaining the coverage enumerated above. In no event will the employee be allowed to retain two or more separate hospitalization insurance plans. In the event the retiree obtains, at his/her 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, may resume with the City, retiree hospitalization insurance as was in effect at the time of his/her retirement. C. The City of Madison Heights shall assume the full cost of Community Blue Option 4 and $5 generic/$40 preferred/$80 non-preferred prescription drug card for those employees hired prior to SECTION 6. The City shall reimburse $125 annually for the purpose of an annual physical examination upon application and presentation of appropriate receipts. Said reimbursement shall cover physical examination only and shall not apply toward treatment of illness or injury. Effective May 10, 2004, the City shall reimburse $125 each Fiscal Year for the purpose of an annual physical examination upon application and presentation of appropriate receipts, including prescription glasses and prescription sunglasses. Effective 7/1/14 the Medical Examination Reimbursement shall be eliminated and the City will provide an additional $125 under Article XIII - Uniform Allowance. SECTION 7. The City shall assume the cost for an annual influenza vaccination for all employees and shall assume the cost of DTP vaccination to be administered once every ten years unless directed otherwise in writing to the City by a physician. SECTION 8. PATIENT PROTECTION AND AFFORDABLE CARE ACT/HEALTH CARE REFORM ACT OF 2010 The City shall comply with all provisions of the Patient Protection and Affordable Care Act [Public Law 111- 148 of the 000xx Xxxxxxxx, 00 X.X.X. 00000] and as such health insurance plans may be subject to change in order to remain in compliance with same and avoid penalties and subsidies. If the City believes that the current insurance plans are inconsistent with the Patient Protection and Affordable Care Act [Public Law 111-148 of the 000xx Xxxxxxxx, 00 X.X.X. 00000], the City may reopen the Collective Bargaining Agreement to address Affordable Health Care Reform Act issues only. .

HEALTH INSURANCE (CONTINUED. For all members hired on or after July 1, 2009, no retiree health insurance will be provided. In lieu of health insurance, the employee shall receive a Health Care Savings Plan (HCSP) into which the City will contribute $100 per month and the employee shall contribute 8% of base salary. Effective July 1, 2015, City contribution to the HCSP for new Command Officers promoted into the bargaining unit with an existing HCSP as a new hire under his or her previous Collective Bargaining Agreement shall be increased from $100 per month to 3% of an employee’s base pay. Upon termination of employment with the City, for any reason, the employee contribution portion of the HCSP shall be available for use on a taxFull-free basis for any medically related expense as permitted under IRS regulations. The employer contribution portion shall be available to the employee after a seven (7) year vesting period. Upon separation from employment with ten (10) or more years of service, the employee shall contribute 100% unused vacation or unused sick leave payable under Article XIV Section 1 and Article XV Section 8 respectively, into the HCSP account, with no withholding taxes, including FICA and Medicare, as allowable under IRS rules. Retirees after July 1, 2011 must enroll in Medicare Parts A & B when they become eligible, at the retiree’s sole expense. Full term retirement being is defined as twenty-five (25) years of service with the City. The limitations set forth above shall continue to be in effect. For eligible full-time employees retiring on or after January 1, 2012, the City shall provide Blue Cross Blue Shield Community Blue 4 (CB4) at retirement to those employees hired prior to May 27, 2009. Should Community Blue 4 (CB4) not be interpreted available where the eligible retiree lives, then the City shall provide equal hospitalization insurance at no cost to include any years the employee. All full-time employees and their spouses at the time of service retirement who retire on or after January 1, 2012, shall receive a closed formulary $5 generic/$40 preferred brand/$80 non –preferred brand prescription drug card provided the employee was hired prior to May 27, 2009 subject to mirroring below. The following benefit, which have been purchased by does not cover past retirees, applies to all current employees for years spent as hired on or before August 20, 1998. In case of the death of a police cadet retiree who retired on or after August 20, 1998, the City will provide single coverage hospitalization insurance for the surviving spouse. Coverage is limited to that person married to the employee as of the date of retirement. City-paid coverage shall be limited to the least expensive City plan available as of Madison Heights. A) If a retiree obtains employment elsewhere said retiree will have the option death of obtaining hospitalization with the subsequent employer or retaining retiree; however, the coverage as enumerated above. In no event will the retiree be allowed to retain two or more separate hospitalization plans. In the event the retiree obtainssurviving spouse may, at his/her option, pay the full cost of the difference between the least expensive and more expensive plans in order to receive the more expensive plan (single coverage only). Coverage shall cease upon the spouse’s death or if the spouse remarries or if the surviving spouse becomes eligible for hospitalization insurance elsewhere, there from any other sources whatsoever. (The City’s coverage shall be no liability with become secondary as 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 Part B Supplement in effect at the time of his/her retirement. The City of Madison Heights shall provide the health care above for an individual who retires under a duty connected disability and their allowable dependant. B) Should the spouse or retiree be employed elsewhere and health insurance is provided to the spouse or retiree, equal to or greater than that provided to the retiree, the City will have no liability for hospitalization insurance. In the event the spouse or retiree terminates employment, the City after notice, will resume hospitalization coverage as enumerated above at the time of retirement. C) The City shall continue to provide hospitalization insurance to the spouse, upon the death of a retiree retiring on or after October 1, 1991becomes eligible for Medicare, unless the spouse shall remarry. If is also eligible for coverage through a third party, in which case the spouse of a retiree, entitled to continued hospitalization insurance third party’s coverage under this subsection upon the retiree's death, obtains employment elsewhere following the retiree's death, said spouse shall have the option of obtaining hospitalization insurance with the subsequent employer or retaining the coverage enumerated above. In no event will the spouse be allowed to retain two or more separate hospitalization insurance plans. In the event the spouse obtains, at the spouse's option, hospitalization insurance elsewhere, there shall be no liability with secondary as the Part B Supplement and the City’s coverage shall cease.) Continuation of the spousal coverage is contingent upon periodic eligibility verification by the City. Upon termination ofAll retirees retiring after May 27, 2009 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. .