Hospital-Medical Insurance – Subject to Compliance with the Publicly Funded Health Contribution Act 2011 PA 152 Sample Clauses

Hospital-Medical Insurance – Subject to Compliance with the Publicly Funded Health Contribution Act 2011 PA 152. The Publicly Funded Health Contribution Act (Public Act 152 of 2011) provides that the District shall pay no more than the annual cost or illustrative rate for a medical benefit plan for employees (including any payments for reimbursement of co-pays, deductibles, or payments into health savings accounts, flexible spending accounts, or similar accounts used for health care costs (”the Additional Payments”) than the “hard cap amounts” of $5500 for single, $11,000 for two-person or $15,000 for family (2011 year). As provided in the “Act”, the “hard cap” amounts will be adjusted annually by the State treasurer by October 1 of each year for the following plan year which begins January 1 based on the change in the medical care component of the U.S. Consumer Price Index. If the District payment for the annual cost or illustrative rates for medical benefit plans offered by the District to employees (including any additional payments) exceed the “hard cap” maximums established by the State treasurer, employees will be required to pay the amount over the hard cap by payroll deduction. The District will discuss such deduction with the Association prior to implementation. If the District payment for the annual cost or illustrative rates for medical benefit plans offered by the District to employees (including any Additional Payments) are less than the “hard cap” maximums, the District will contribute to the employees’ Health Savings Account (HSA) or Flexible Savings Account (FSA) according to the formula in H(4) of this article. In no event shall this Section be interpreted to require the District to make a payment which would cause it to violate the Publicly Funded Health Insurance Contribution Act. (Background – Not Part of Contract) (To comply with the Publicly Funded Health Contribution Act, the District restated its cafeteria benefits plan document (Educated Choices) to include a High Deductible Health Plan (HDHP) (with employee and employer contributions), and a Flexible Spending Account. It was also necessary to have a short plan year covering November and December, 2012 and changing the plan year to January 1 – December 31 for all future years. This was to comply with the annual contribution limits for the Health Savings accounts.) The health insurance coverage provided in the 2008-2012 contract will remain in effect through October 31, 2012. Effective November 1, 2012, the District will provide, either by self-insurance or a policy of insurance, the following...
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Related to Hospital-Medical Insurance – Subject to Compliance with the Publicly Funded Health Contribution Act 2011 PA 152

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