Common use of Method of Computing Employees' Share of Premiums Clause in Contracts

Method of Computing Employees' Share of Premiums. (See Appendix A for health care plan descriptions for summary of coverage and benefits.) The four health care packages offered to employees have been designed to meet various needs and preferences among employees, yet provide a comparable value regardless of the package selected. Therefore, any employee contributions to health care premiums in 2000, 2001 and 2002 will vary only according to the employee's family status (that is, coverage for the employee only, the employee and one dependent, or the employee and two or more dependents), but not according to the plan selected. In this way, freedom of choice among options is maintained and any migration by employees from one program to another is based on the merits of the options and the employee's preferences rather than on differences in employee contribution requirements. The amount of employee contributions, if any, will be determined prior to January of each year and communicated at the time when employees are permitted to change their health care plan elections. Effective January 1, 2000, employees’ co-payments for prescription drugs shall be $10.00 per prescription for generic drugs and $20.00 per prescription for brand-name drugs. The Employer’s and employees’ obligations to pay premiums in 2000 are contained in the letter of understanding on health insurance enclosed as part of this Agreement. The Employer will pay the entire cost or a portion of the cost of the health insurance premiums based upon the formula stated herein for employees and covered dependents for 2001 and 2002. The method by which the increase of 2001 and 2002 health care costs over 2000 will be determined is by applying the rates to be effective January 1, 2001 and 2002, to the actual enrollment levels recorded for October 2000, which is the base month. In 2001, Bay County will contribute toward the cost of health care plans in an amount equal to the lesser of: the actual premium cost of the four options provided, or an amount equal to 107% of the aggregate premium payable for the base month of October 2000. If the overall premium cost beginning January 1, 2001 exceeds 107% of the base monthly premium cost using the method referred to earlier, then employees will contribute the average excess above 107%. For example, if the average calculated premium is 109% of the base, employees will contribute 2% of the average 2001 premium for their level of coverage. That is, an average premium covering only an employee, an employee with one dependent, and an employee with two or more dependents will be calculated separately using the same base month enrollment as referred to earlier. The 2% employee contribution will be calculated separately for each of these levels of dependent coverage so that all employees who enroll in a health care option will make a contribution toward the excess cost, but employees with dependents will make proportionately greater contributions. In 2002, Bay County will contribute toward the cost of health care plans in an amount equal to the lesser of: the actual premium cost of the four options provided, or an amount equal to 114% of the aggregate premium payable for the base month of October 2000. Prior to the 2001 open enrollment in December of 2000, the average premium increase will be recalculated. If the average premium exceeds 107% of the base month premium using the method as referred to earlier, employee contributions will be recalculated. If the average premium is less than 107% of the base month premium (October 2000), then there will not be an employee contribution in 2001. Prior to the 2002 open enrollment in December of 2001, the average premium increase will be recalculated. If the average premium exceeds 114% of the base month premium using the method as referred to earlier, employee contributions will be recalculated. If the average premium is less than 114% of the base month premium (October 2000), then there will not be an employee contribution in 2002. The County will provide to the Union prior to January of each year the County’s actual premium costs for its health insurance plan(s) for the prior calendar year. In the event that the County has received a refund of insurance premiums from the insurance company for the previous calendar year and each employee was required to pay a portion of his/her health insurance premium in that year, each employee employed on December 31st of the current year will be refunded the lesser of the employee’s pro-rata share of the refund or the actual amount he/she paid in the previous calendar year. Payment will be made in the form of an Accounts Payable check by April 30th of the upcoming year. Refunds will be made only to those employees whose refund amount is $5.00 or more. In no case will employees receive refunds greater than their actual contributions. EXAMPLE A: In total, employees contributed $20,000 toward their health insurance coverage in 1995. In September, 1996, the County received a refund of $50,000 from the insurance company. Each employee employed on December 31, 1996 will receive a refund of 100% of his/her actual contributions made in 1995. EXAMPLE B: In total, employees contributed $20,000 toward their health insurance coverage in 1995. In September, 1996, the County received a refund of $10,000 from the insurance company. Each employee employed on December 31, 1996, will receive a refund equal to 50% of his/her actual contributions made in 1995. EXAMPLE C: In total, employees contributed zero dollars toward their health insurance coverage in 1995. In September, 1996, the County received a refund of $10,000 from the insurance company. Since employees did not contribute towards their health insurance coverage, employees will receive no refund. During the period that the labor agreements regarding health insurance are in effect, Bay County will make reasonable efforts to ensure that all four medical plan options are available to employees subject to the agreements. However, Bay County reserves the right to negotiate with any insurers or administrators of medical plans and to award plan contracts and designate insurers and administrators of its own choosing as long as comparable coverage is maintained. Effective from January 1, 2003 through June 30, 2003, employees shall contribute, through payroll deduction, 17% of the expected cost of health insurance in 2003, using the weighted average of the five health plans offered. For the period of time from January 1, 2003 through June 30, 2003, employees shall receive retroactive payment, within 30 days of execution of this agreement by all the parties, for overpayments they made toward the cost of health insurance during that period of time. For other overpayments made by employees in 2003, retroactive payment shall be provided to employees in approximately January 2004. Retroactive payments will be provided only to employees employed on the date of ratification of this agreement by the parties. Retroactive payments will be pro-rated for employees who switched coverage (e.g., from family to two-person coverage) or were employed for part of the retroactive period (i.e., hired after January 1, 2003 but before the end of the retroactive period). For the period of time January 1, 2003 through December 31, 2003, the County will continue to offer Blue Cross Blue Shield PPO with dental and vision riders, Blue Cross Blue Shield PPO Plan 1, Blue Cross Blue Shield CMM 100, Blue Cross Blue Shield CMM 250 and Blue Care Network. During open enrollment in November 2003, 2004 and 2005, employees shall select, effective January 1st of the following year, either the Blue Cross Blue Shield PPO with dental and vision riders or the CMM 100 plan. Effective July 1, 2003, employees’ contributions shall be a percentage of the rates that are developed based upon the actual cost of the Blue Cross Blue Shield contract in 2002 and the 2002 Blue Care Network premiums. Accordingly, from July 1, 2003 through June 30, 2004, employees shall contribute, through payroll deduction, 17% of the rate developed for the Blue Cross plan in which the employee is enrolled or 17% of the 2002 Blue Care Network premium if the employee is enrolled in Blue Care Network. Effective July 1st of 2004, employees’ contributions shall be a percentage of the rates that are developed based upon the actual cost of the Blue Cross Blue Shield contract in the preceding year. Consequently, effective July 1, 2004, employees shall contribute, through payroll deduction, 15% of the rates developed for the plan in which the employee is enrolled. Effective July 1, 2005, employees shall contribute, through payroll deduction, 15% of the rates developed for the plan in which the employee is enrolled. RETIREES

Method of Computing Employees' Share of Premiums. (See Appendix A for health care plan descriptions for summary of coverage and benefits.) ). The four health care packages offered to employees have been designed to meet various needs and preferences among employees, yet provide a comparable value regardless of the package selected. Therefore, any employee contributions to health care premiums in 2000, 2001 and 2002 will vary only according to the employee's ' s family status (that is, coverage for the employee only, the employee and one dependent, or the employee and two or more dependents), but not according to the plan selected. In this way, freedom of choice among options is maintained and any migration by employees from one program to another is based on the merits of the options and the employee's ' s preferences rather than on differences in employee contribution requirements. The amount of employee contributions, if any, will be determined prior to January of each year and communicated at the time when employees are permitted to change their health care plan elections. Effective January 1, 2000, employees’ co-payments for prescription drugs shall be $10.00 per prescription for generic drugs and $20.00 per prescription for brand-name drugs. The Employer’s and employees’ obligations to pay premiums in 2000 are contained in the letter of understanding on health insurance enclosed as part of this Agreement. The Employer will pay the entire cost or a portion of the cost of the health insurance premiums based upon the formula stated herein for employees and covered dependents for 2001 and 2002. The method by which the increase of 2001 and 2002 health care costs over 2000 will be determined is by applying the rates to be effective January 1, 2001 and 2002, to the actual enrollment levels recorded for October 2000, which is the base month. In 2001, Bay County will contribute toward the cost of health care plans in an amount equal to the lesser of: the actual premium cost of the four options provided, or an amount equal to 107% of the aggregate premium payable for the base month of October 2000. If the overall premium cost beginning January 1, 2001 exceeds 107% of the base monthly premium cost using the method referred to earlier, then employees will contribute the average excess above 107%. For example, if the average calculated premium is 109% of the base, employees will contribute 2% of the average 2001 premium for their level of coverage. That is, an average premium covering only an employee, an employee with one dependent, and an employee with two or more dependents will be calculated separately using the same base month enrollment as referred to earlier. The 2% employee contribution will be calculated separately for each of these levels of dependent coverage so that all employees who enroll in a health care option will make a contribution toward the excess cost, but employees with dependents will make proportionately greater contributions. In 2002, Bay County will contribute toward the cost of health care plans in an amount equal to the lesser of: the actual premium cost of the four options provided, or an amount equal to 114% of the aggregate premium payable for the base month of October 2000. Prior to the 2001 open enrollment in December of 2000, the average premium increase will be recalculated. If the average premium exceeds 107% of the base month premium using the method as referred to earlier, employee contributions will be recalculated. If the average premium is less than 107% of the base month premium (October 2000), then there will not be an employee contribution in 2001. Prior to the 2002 open enrollment in December of 2001, the average premium increase will be recalculated. If the average premium exceeds 114% of the base month premium using the method as referred to earlier, employee contributions will be recalculated. If the average premium is less than 114% of the base month premium (October 2000), then there will not be an employee contribution in 2002. The County will provide to the Union prior to January of each year the County’s actual premium costs for its health insurance plan(s) for the prior calendar year. In the event that the County has received a refund of insurance premiums from the insurance company for the previous calendar year and each employee was required to pay a portion of his/her health insurance premium in that year, each employee employed on December 31st of the current year will be refunded the lesser of the employee’s pro-rata share of the refund or the actual amount he/she paid in the previous calendar year. Payment will be made in the form of an Accounts Payable check by April 30th of the upcoming year. Refunds will be made only to those employees whose refund amount is $5.00 or more. In no case will employees receive refunds greater than their actual contributions. EXAMPLE A: In total, employees contributed $20,000 toward their health insurance coverage in 1995. In September, 1996, the County received a refund of $50,000 from the insurance company. Each employee employed on December 31, 1996 will receive a refund of 100% of his/her actual contributions made in 1995. EXAMPLE B: In total, employees contributed $20,000 toward their health insurance coverage in 1995. In September, 1996, the County received a refund of $10,000 from the insurance company. Each employee employed on December 31, 1996, will receive a refund equal to 50% of his/her actual contributions made in 1995. EXAMPLE C: In total, employees contributed zero dollars toward their health insurance coverage in 1995. In September, 1996, the County received a refund of $10,000 10, 000 from the insurance company. Since employees did not contribute towards their health insurance coverage, employees will receive no refund. During the period that the labor agreements regarding health insurance are in effect, Bay County will make reasonable efforts to ensure that all four medical plan options are available to employees subject to the agreements. However, Bay County reserves the right to negotiate with any insurers or administrators of medical plans and to award plan contracts and designate insurers and administrators of its own choosing as long as comparable coverage is maintained. Effective from January 1, 2003 through June 30, 2003, employees shall contribute, through payroll deduction, 17% of the expected cost of health insurance in 2003, using the weighted average of the five health plans offered. For the period of time from January 1, 2003 through June 30, 2003, employees shall receive retroactive payment, within 30 days of execution of this agreement by all the parties, for overpayments they made toward the cost of health insurance during that period of time. For other overpayments made by employees in 20032003 and 2004, retroactive payment shall be provided to employees in approximately January 2004employees. Retroactive payments will be provided only to employees employed on the date of ratification of this agreement by the parties. Retroactive payments will be pro-rated for employees who switched coverage (e.g., from family to two-person coverage) or were employed for part of the retroactive period (i.e., hired after January 1, 2003 but before the end of the retroactive period). For the period of time January 1, 2003 through December 31, 20032004, the County will continue to offer Blue Cross Blue Shield PPO with dental and vision riders, Blue Cross Blue Shield PPO Plan 1, Blue Cross Blue Shield CMM 100, Blue Cross Blue Shield CMM 250 and Blue Care Network. During open enrollment in November 2003, 2004 and 2005, employees shall select, effective January 1st of the following year, either the Blue Cross Blue Shield PPO with dental and vision riders or the CMM 100 plan. Effective July 1, 2003, employees’ contributions shall be a percentage of the rates that are developed based upon the actual cost of the Blue Cross Blue Shield contract in 2002 and the 2002 Blue Care Network premiums. Accordingly, from July 1, 2003 through June 30, 2004, employees shall contribute, through payroll deduction, 17% of the rate developed for the Blue Cross plan in which the employee is enrolled or 17% of the 2002 Blue Care Network premium if the employee is enrolled in Blue Care Network. Effective July 1st of 2004, employees’ contributions shall be a percentage of the rates that are developed based upon the actual cost of the Blue Cross Blue Shield contract in the preceding year or the actual cost of the Blue Care Network plan in the preceding year. Consequently, effective July 1, 2004, employees shall contribute, through payroll deduction, 15% of the rates developed for the Blue Cross plan in which the employee is enrolled or 15% of the Blue Care Network plan in which the employee is enrolled. Effective July 1, 2005, employees shall contribute, through payroll deduction, 15% of the rates developed for the plan in which the employee is enrolled. RETIREES

Method of Computing Employees' Share of Premiums. (See Appendix A B for health care plan descriptions for summary of coverage and benefits.) ). The four health care packages offered to employees have been designed to meet various needs and preferences among employees, yet provide a comparable value regardless of the package selected. Therefore, any employee contributions to health care premiums in 2000, 2001 and 2002 will vary only according to the employee's family status (that is, coverage for the employee only, the employee and one dependent, or the employee and two or more dependents), but not according to the plan selected. In this way, freedom of choice among options is maintained and any migration by employees from one program to another is based on the merits of the options and the employee's preferences rather than on differences in employee contribution requirements. The amount of employee contributions, if any, will be determined prior to January of each year and communicated at the time when employees are permitted to change their health care plan elections. Effective January 1, 2000, employees’ co-payments for prescription drugs shall be $10.00 per prescription for generic drugs and $20.00 per prescription for brand-name drugs. The Employer’s and employees’ obligations to pay premiums in 2000 are contained in the letter of understanding on health insurance enclosed attached as part of this Agreement. The Employer will pay the entire cost or a portion of the cost of the health insurance premiums based upon the formula stated herein for employees and covered dependents for 2001 and 2002. The method by which the increase of 2001 and 2002 health care costs over 2000 will be determined is by applying the rates to be effective January 1, 2001 and 2002, to the actual enrollment levels recorded for October 2000, which is the base month. In 2001, Bay County will contribute toward the cost of health care plans in an amount equal to the lesser of: the actual premium cost of the four options provided, or an amount equal to 107% of the aggregate premium payable for the base month of October 2000. If the overall premium cost beginning January 1, 2001 exceeds 107% of the base monthly premium cost using the method referred to earlier, then employees will contribute the average excess above 107%. For example, if the average calculated premium is 109% of the base, employees will contribute 2% of the average 2001 premium for their level of coverage. That is, an average premium covering only an employee, an employee with one dependent, and an employee with two or more dependents will be calculated separately using the same base month enrollment as referred to earlier. The 2% employee contribution will be calculated separately for each of these levels of dependent coverage so that all employees who enroll in a health care option will make a contribution toward the excess cost, but employees with dependents will make proportionately greater contributions. In 2002, Bay County will contribute toward the cost of health care plans in an amount equal to the lesser of: the actual premium cost of the four options provided, or an amount equal to 114% of the aggregate premium payable for the base month of October 2000. Prior to the 2001 open enrollment in December of 2000, the average premium increase will be recalculated. If the average premium exceeds 107% of the base month premium using the method as referred to earlier, employee contributions will be recalculated. If the average premium is less than 107% of the base month premium (October 2000), then there will not be an employee contribution in 2001. Prior to the 2002 open enrollment in December of 2001, the average premium increase will be recalculated. If the average premium exceeds 114% of the base month premium using the method as referred to earlier, employee contributions will be recalculated. If the average premium is less than 114% of the base month premium (October 2000), then there will not be an employee contribution in 2002. The County will provide to the Union prior to January of each year the County’s actual premium costs for its health insurance plan(s) for the prior calendar year. In the event that the County has received a refund of insurance premiums from the insurance company for the previous calendar year and each employee was required to pay a portion of his/her health insurance premium in that year, each employee employed on December 31st of the current year will be refunded the lesser of the employee’s pro-rata share of the refund or the actual amount he/she paid in the previous calendar year. Payment will be made in the form of an Accounts Payable check by April 30th of the upcoming year. Refunds will be made only to those employees whose refund amount is $5.00 or more. In no case will employees receive refunds greater than their actual contributions. EXAMPLE A: In total, employees contributed $20,000 toward their health insurance coverage in 1995. In September, 1996, the County received a refund of $50,000 from the insurance company. Each employee employed on December 31, 1996 will receive a refund of 100% of his/her actual contributions made in 1995. EXAMPLE B: In total, employees contributed $20,000 toward their health insurance coverage in 1995. In September, 1996, the County received a refund of $10,000 from the insurance company. Each employee employed on December 31, 1996, will receive a refund equal to 50% of his/her actual contributions made in 1995. EXAMPLE C: In total, employees contributed zero dollars toward their health insurance coverage in 1995. In September, 1996, the County received a refund of $10,000 from the insurance company. Since employees did not contribute towards their health insurance coverage, employees will receive no refund. During the period that the labor agreements regarding health insurance are in effect, Bay County will make reasonable efforts to ensure that all four medical plan options are available to employees subject to the agreements. However, Bay County reserves the right to negotiate with any insurers or administrators of medical plans and to award plan contracts and designate insurers and administrators of its own choosing as long as comparable coverage is maintained. Effective from January 1, 2003 through June 30, 2003, employees shall contribute, through payroll deduction, 17% of the expected cost of health insurance in 2003, using the weighted average of the five health plans offered. For the period of time from January 1, 2003 through June 30, 2003, employees shall receive retroactive payment, within 30 days of execution of this agreement by all the parties, for overpayments they made toward the cost of health insurance during that period of time. For other overpayments made by employees in 20032003 and 2004, retroactive payment shall be provided to employees in approximately January 2004employees. Retroactive payments will be provided only to employees employed on the date of ratification of this agreement by the parties. Retroactive payments will be pro-rated for employees who switched coverage (e.g., from family to two-person coverage) or were employed for part of the retroactive period (i.e., hired after January 1, 2003 but before the end of the retroactive period). For the period of time January 1, 2003 through December 31, 20032004, the County will continue to offer Blue Cross Blue Shield PPO with dental and vision riders, Blue Cross Blue Shield PPO Plan 1, Blue Cross Blue Shield CMM 100, Blue Cross Blue Shield CMM 250 and Blue Care Network. During open enrollment in November 2003, 2004 and 2005, employees shall select, effective January 1st of the following year, either the Blue Cross Blue Shield PPO with dental and vision riders or the CMM 100 plan. Effective July 1, 2003, employees’ contributions shall be a percentage of the rates that are developed based upon the actual cost of the Blue Cross Blue Shield contract in 2002 and the 2002 Blue Care Network premiums. Accordingly, from July 1, 2003 through June 30, 2004, employees shall contribute, through payroll deduction, 17% of the rate developed for the Blue Cross plan in which the employee is enrolled or 17% of the 2002 Blue Care Network premium if the employee is enrolled in Blue Care Network. Effective July 1st of 2004, employees’ contributions shall be a percentage of the rates that are developed based upon the actual cost of the Blue Cross Blue Shield contract in the preceding year or the actual cost of the Blue Care Network plan in the preceding year. Consequently, effective July 1, 2004, employees shall contribute, through payroll deduction, 15% of the rates developed for the plan in which the employee is enrolled or 15% of the Blue Care Network plan in which the employee is enrolled. Effective July 1, 2005, employees shall contribute, through payroll deduction, 15% of the rates developed for the plan in which the employee is enrolled. RETIREES

Method of Computing Employees' Share of Premiums. (See Appendix A for health care plan descriptions for summary of coverage and benefits.) ). The four health care packages offered to employees have been designed to meet various needs and preferences among employees, yet provide a comparable value regardless of the package selected. Therefore, any employee contributions to health care premiums in 2000, 2001 and 2002 will vary only according to the employee's family status (that is, coverage for the employee only, the employee and one dependent, or the employee and two or more dependents), but not according to the plan selected. In this way, freedom of choice among options is maintained and any migration by employees from one program to another is based on the merits of the options and the employee's preferences rather than on differences in employee contribution requirements. The amount of employee contributions, if any, will be determined prior to January of each year and communicated at the time when employees are permitted to change their health care plan elections. Effective January 1, 2000, employees’ co-payments for prescription drugs shall be $10.00 per prescription for generic drugs and $20.00 per prescription for brand-name drugs. The Employer’s and employees’ obligations to pay premiums in 2000 are contained in the letter of understanding on health insurance enclosed attached as part of this Agreement. The Employer will pay the entire cost or a portion of the cost of the health insurance premiums based upon the formula stated herein for employees and covered dependents for 2001 and 2002. The method by which the increase of 2001 and 2002 health care costs over 2000 will be determined is by applying the rates to be effective January 1, 2001 and 2002, to the actual enrollment levels recorded for October 2000, which is the base month. In 2001, Bay County will contribute toward the cost of health care plans in an amount equal to the lesser of: the actual premium cost of the four options provided, or an amount equal to 107% of the aggregate premium payable for the base month of October 2000. If the overall premium cost beginning January 1, 2001 exceeds 107% of the base monthly premium cost using the method referred to earlier, then employees will contribute the average excess above 107%. For example, if the average calculated premium is 109% of the base, employees will contribute 2% of the average 2001 premium for their level of coverage. That is, an average premium covering only an employee, an employee with one dependent, and an employee with two or more dependents will be calculated separately using the same base month enrollment as referred to earlier. The 2% employee contribution will be calculated separately for each of these levels of dependent coverage so that all employees who enroll in a health care option will make a contribution toward the excess cost, but employees with dependents will make proportionately greater contributions. In 2002, Bay County will contribute toward the cost of health care plans in an amount equal to the lesser of: the actual premium cost of the four options provided, or an amount equal to 114% of the aggregate premium payable for the base month of October 2000. Prior to the 2001 open enrollment in December of 2000, the average premium increase will be recalculated. If the average premium exceeds 107% of the base month premium using the method as referred to earlier, employee contributions will be recalculated. If the average premium is less than 107% of the base month premium (October 2000), then there will not be an employee contribution in 2001. Prior to the 2002 open enrollment in December of 2001, the average premium increase will be recalculated. If the average premium exceeds 114% of the base month premium using the method as referred to earlier, employee contributions will be recalculated. If the average premium is less than 114% of the base month premium (October 2000), then there will not be an employee contribution in 2002. The County will provide to the Union prior to January of each year the County’s actual premium costs for its health insurance plan(s) for the prior calendar year. In the event that the County has received a refund of insurance premiums from the insurance company for the previous calendar year and each employee was required to pay a portion of his/her health insurance premium in that year, each employee employed on December 31st of the current year will be refunded the lesser of the employee’s pro-pro- rata share of the refund or the actual amount he/she paid in the previous calendar year. Payment will be made in the form of an Accounts Payable check by April 30th of the upcoming year. Refunds will be made only to those employees whose refund amount is $5.00 or more. In no case will employees receive refunds greater than their actual contributions. EXAMPLE A: In total, employees contributed $20,000 toward their health insurance coverage in 1995. In September, 1996, the County received a refund of $50,000 from the insurance company. Each employee employed on December 31, 1996 will receive a refund of 100% of his/her actual contributions made in 1995. EXAMPLE B: In total, employees contributed $20,000 toward their health insurance coverage in 1995. In September, 1996, the County received a refund of $10,000 from the insurance company. Each employee employed on December 31, 1996, will receive a refund equal to 50% of his/her actual contributions made in 1995. EXAMPLE C: In total, employees contributed zero dollars toward their health insurance coverage in 1995. In September, 1996, the County received a refund of $10,000 from the insurance company. Since employees did not contribute towards their health insurance coverage, employees will receive no refund. During the period that the labor agreements regarding health insurance are in effect, Bay County will make reasonable efforts to ensure that all four medical plan options are available to employees subject to the agreements. However, Bay County reserves the right to negotiate with any insurers or administrators of medical plans and to award plan contracts and designate insurers and administrators of its own choosing as long as comparable coverage is maintained. Effective from January 1, 2003 through June 30, 2003, employees shall contribute, through payroll deduction, 17% of the expected cost of health insurance in 2003, using the weighted average of the five health plans offered. For the period of time from January 1, 2003 through June 30, 2003, employees shall receive retroactive payment, within 30 days of execution of this agreement by all the parties, for overpayments they made toward the cost of health insurance during that period of time. For other overpayments made by employees in 2003, retroactive payment shall be provided to employees in approximately January 2004October 2003. Retroactive payments will be provided only to employees employed on the date of ratification of this agreement by the parties. Retroactive payments will be pro-rated for employees who switched coverage (e.g., from family to two-person coverage) or were employed for part of the retroactive period (i.e., hired after January 1, 2003 but before the end of the retroactive period). For the period of time January 1, 2003 through December 31, 2003, the County will continue to offer Blue Cross Blue Shield PPO with dental and vision riders, Blue Cross Blue Shield PPO Plan 1, Blue Cross Blue Shield CMM 100, Blue Cross Blue Shield CMM 250 and Blue Care Network. During open enrollment in November 2003, 2004 and 2005, employees shall select, effective January 1st of the following year, either the Blue Cross Blue Shield PPO with dental and vision riders or the CMM 100 plan. Effective July 1, 2003, employees’ contributions shall be a percentage of the rates that are developed based upon the actual cost of the Blue Cross Blue Shield contract in 2002 and the 2002 Blue Care Network premiums. Accordingly, from July 1, 2003 through June 30, 2004, employees shall contribute, through payroll deduction, 17% of the rate developed for the Blue Cross plan in which the employee is enrolled or 17% of the 2002 Blue Care Network premium if the employee is enrolled in Blue Care Network. Effective July 1st of 2004each year subsequent to 2003, employees’ contributions shall be a percentage of the rates that are developed based upon the actual cost of the Blue Cross Blue Shield contract in the preceding year. Consequently, effective July 1, 2004, employees shall contribute, through payroll deduction, 15% of the rates developed for the plan in which the employee is enrolled. Effective July 1, 2005, employees shall contribute, through payroll deduction, 15% of the rates developed for the plan in which the employee is enrolled. RETIREES

Method of Computing Employees' Share of Premiums. (See Appendix A for health care plan descriptions for summary of coverage and benefits.) The four health care packages offered to employees have been designed to meet various needs and preferences among employees, yet provide a comparable value regardless of the package selected. Therefore, any employee contributions to health care premiums in 2000, 2001 and 2002 will vary only according to the employee's ' s family status (that is, coverage for the employee only, the employee and one dependent, or the employee and two or more dependents), but not according to the plan selected. In this way, freedom of choice among options is maintained and any migration by employees from one program to another is based on the merits of the options and the employee's ' s preferences rather than on differences in employee contribution requirements. The amount of employee contributions, if any, will be determined prior to January of each year and communicated at the time when employees are permitted to change their health care plan elections. Effective January 1, 2000, employees’ co-payments for prescription drugs shall be $10.00 per prescription for generic drugs and $20.00 per prescription for brand-name drugs. The Employer’s and employees’ obligations to pay premiums in 2000 are contained in the letter of understanding on health insurance enclosed as part of this AgreementAgreement (Appendix A). The Employer will pay the entire cost or a portion of the cost of the health insurance premiums based upon the formula stated herein for employees and covered dependents for 2001 and 2002. The method by which the increase of 2001 and 2002 health care costs over 2000 will be determined is by applying the rates to be effective January 1, 2001 and 2002, to the actual enrollment levels recorded for October 2000, which is the base month. In 2001, Bay County will contribute toward the cost of health care plans in an amount equal to the lesser of: the actual premium cost of the four options provided, or an amount equal to 107% of the aggregate premium payable for the base month of October 2000. If the overall premium cost beginning January 1, 2001 exceeds 107% of the base monthly premium cost using the method referred to earlier, then employees will contribute the average excess above 107%. For example, if the average calculated premium is 109% of the base, employees will contribute 2% of the average 2001 premium for their level of coverage. That is, an average premium covering only an employee, an employee with one dependent, and an employee with two or more dependents will be calculated separately using the same base month enrollment as referred to earlier. The 2% employee contribution will be calculated separately for each of these levels of dependent coverage so that all employees who enroll in a health care option will make a contribution toward the excess cost, but employees with dependents will make proportionately greater contributions. In 2002, Bay County will contribute toward the cost of health care plans in an amount equal to the lesser of: the actual premium cost of the four options provided, or an amount equal to 114% of the aggregate premium payable for the base month of October 2000. Prior to the 2001 open enrollment in December of 2000, the average premium increase will be recalculated. If the average premium exceeds 107% of the base month premium using the method as referred to earlier, employee contributions will be recalculated. If the average premium is less than 107% of the base month premium (October 2000), then there will not be an employee contribution in 2001. Prior to the 2002 open enrollment in December of 2001, the average premium increase will be recalculated. If the average premium exceeds 114% of the base month premium using the method as referred to earlier, employee contributions will be recalculated. If the average premium is less than 114% of the base month premium (October 2000), then there will not be an employee contribution in 2002. The County will provide to the Union prior to January of each year the County’s actual premium costs for its health insurance plan(s) for the prior calendar year. In the event that the County has received a refund of insurance premiums from the insurance company for the previous calendar year and each employee was required to pay a portion of his/her health insurance premium in that year, each employee employed on December 31st of the current year will be refunded the lesser of the employee’s pro-rata share of the refund or the actual amount he/she paid in the previous calendar year. Payment will be made in the form of an Accounts Payable check by April 30th of the upcoming year. Refunds will be made only to those employees whose refund amount is $5.00 or more. In no case will employees receive refunds greater than their actual contributions. EXAMPLE A: In total, employees contributed $20,000 toward their health insurance coverage in 1995. In September, 1996, the County received a refund of $50,000 from the insurance company. Each employee employed on December 31, 1996 will receive a refund of 100% of his/her actual contributions made in 1995. EXAMPLE B: In total, employees contributed $20,000 toward their health insurance coverage in 1995. In September, 1996, the County received a refund of $10,000 from the insurance company. Each employee employed on December 31, 1996, will receive a refund equal to 50% of his/her actual contributions made in 1995. EXAMPLE C: In total, employees contributed zero dollars toward their health insurance coverage in 1995. In September, 1996, the County received a refund of $10,000 from the insurance company. Since employees did not contribute towards their health insurance coverage, employees will receive no refund. During the period that the labor agreements regarding health insurance are in effect, Bay County will make reasonable efforts to ensure that all four medical plan options are available to employees subject to the agreements. However, Bay County reserves the right to negotiate with any insurers or administrators of medical plans and to award plan contracts and designate insurers and administrators of its own choosing as long as comparable coverage is maintained. Effective from January 1, 2003 through June 30, 2003, employees shall contribute, through payroll deduction, 17% of the expected cost of health insurance in 2003, using the weighted average of the five health plans offered. For the period of time from January 1, 2003 through June 30, 2003, employees shall receive retroactive payment, within 30 days of execution of this agreement by all the parties, for overpayments they made toward the cost of health insurance during that period of time. For other overpayments made by employees in 2003employees, retroactive payment shall be provided to employees in approximately January 2004. Retroactive payments will be provided only to employees employed on the date of ratification of this agreement by the parties. Retroactive payments will be pro-rated for employees who switched coverage (e.g., from family to two-person coverage) or were employed for part of the retroactive period (i.e., hired after January 1, 2003 but before the end of the retroactive period). For the period of time January 1, 2003 through December 31, 20032004, the County will continue to offer Blue Cross Blue Shield PPO with dental and vision riders, Blue Cross Blue Shield PPO Plan 1, Blue Cross Blue Shield CMM 100, Blue Cross Blue Shield CMM 250 and Blue Care Network. During open enrollment in November 2003, 2004 and 2005, employees shall select, effective January 1st of the following year, either the Blue Cross Blue Shield PPO with dental and vision riders or the CMM 100 plan. Effective July 1, 2003, employees’ contributions contribution shall be a percentage of the rates that are developed based upon the actual cost of the Blue Cross Blue Shield contract in 2002 and the 2002 Blue Care Network premiums. Accordingly, from July 1, 2003 through June 30, 2004, employees shall contribute, through payroll deduction, 17% of the rate developed for the Blue Cross plan in which the they employee is enrolled or 17% of the 2002 Blue Care Network premium if the employee is enrolled in Blue Care Network. Effective July 1st of 2004, employees’ contributions shall be a percentage of the rates that are developed based upon the actual cost of the Blue Cross Blue Shield contract in the preceding year. Consequently, effective July 1, 2004, employees shall contribute, through payroll deduction, 15% of the rates developed for the plan in which the employee is enrolled. Effective July 1, 2005, employees shall contribute, through payroll deduction, 15% of the rates developed for the plan in which the employee is enrolled. RETIREES

Method of Computing Employees' Share of Premiums. (See Appendix A B for health care plan descriptions for summary of coverage and benefits.) ). The four health care packages offered to employees have been designed to meet various needs and preferences among employees, yet provide a comparable value regardless of the package selected. Therefore, any employee contributions to health care premiums in 2000, 2001 and 2002 will vary only according to the employee's family status (that is, coverage for the employee only, the employee and one dependent, or the employee and two or more dependents), but not according to the plan selected. In this way, freedom of choice among options is maintained and any migration by employees from one program to another is based on the merits of the options and the employee's preferences rather than on differences in employee contribution requirements. The amount of employee contributions, if any, will be determined prior to January of each year and communicated at the time when employees are permitted to change their health care plan elections. Effective January 1, 2000, employees’ co-payments for prescription drugs shall be $10.00 per prescription for generic drugs and $20.00 per prescription for brand-name drugs. The Employer’s and employees’ obligations to pay premiums in 2000 are contained in the letter of understanding on health insurance enclosed attached as part of this Agreement. The Employer will pay the entire cost or a portion of the cost of the health insurance premiums based upon the formula stated herein for employees and covered dependents for 2001 and 2002. The method by which the increase of 2001 and 2002 health care costs over 2000 will be determined is by applying the rates to be effective January 1, 2001 and 2002, to the actual enrollment levels recorded for October 2000, which is the base month. In 2001, Bay County will contribute toward the cost of health care plans in an amount equal to the lesser of: the actual premium cost of the four options provided, or an amount equal to 107% of the aggregate premium payable for the base month of October 2000. If the overall premium cost beginning January 1, 2001 exceeds 107% of the base monthly premium cost using the method referred to earlier, then employees will contribute the average excess above 107%. For example, if the average calculated premium is 109% of the base, employees will contribute 2% of the average 2001 premium for their level of coverage. That is, an average premium covering only an employee, an employee with one dependent, and an employee with two or more dependents will be calculated separately using the same base month enrollment as referred to earlier. The 2% employee contribution will be calculated separately for each of these levels of dependent coverage so that all employees who enroll in a health care option will make a contribution toward the excess cost, but employees with dependents will make proportionately greater contributions. In 2002, Bay County will contribute toward the cost of health care plans in an amount equal to the lesser of: the actual premium cost of the four options provided, or an amount equal to 114% of the aggregate premium payable for the base month of October 2000. Prior to the 2001 open enrollment in December of 2000, the average premium increase will be recalculated. If the average premium exceeds 107% of the base month premium using the method as referred to earlier, employee contributions will be recalculated. If the average premium is less than 107% of the base month premium (October 2000), then there will not be an employee contribution in 2001. Prior to the 2002 open enrollment in December of 2001, the average premium increase will be recalculated. If the average premium exceeds 114% of the base month premium using the method as referred to earlier, employee contributions will be recalculated. If the average premium is less than 114% of the base month premium (October 2000), then there will not be an employee contribution in 2002. The County will provide to the Union prior to January of each year the County’s actual premium costs for its health insurance plan(s) for the prior calendar year. In the event that the County has received a refund of insurance premiums from the insurance company for the previous calendar year and each employee was required to pay a portion of his/her health insurance premium in that year, each employee employed on December 31st of the current year will be refunded the lesser of the employee’s pro-pro- rata share of the refund or the actual amount he/she paid in the previous calendar year. Payment will be made in the form of an Accounts Payable check by April 30th of the upcoming year. Refunds will be made only to those employees whose refund amount is $5.00 or more. In no case will employees receive refunds greater than their actual contributions. EXAMPLE A: In total, employees contributed $20,000 toward their health insurance coverage in 1995. In September, 1996, the County received a refund of $50,000 from the insurance company. Each employee employed on December 31, 1996 will receive a refund of 100% of his/her actual contributions made in 1995. EXAMPLE B: In total, employees contributed $20,000 toward their health insurance coverage in 1995. In September, 1996, the County received a refund of $10,000 from the insurance company. Each employee employed on December 31, 1996, will receive a refund equal to 50% of his/her actual contributions made in 1995. EXAMPLE C: In total, employees contributed zero dollars toward their health insurance coverage in 1995. In September, 1996, the County received a refund of $10,000 from the insurance company. Since employees did not contribute towards their health insurance coverage, employees will receive no refund. During the period that the labor agreements regarding health insurance are in effect, Bay County will make reasonable efforts to ensure that all four medical plan options are available to employees subject to the agreements. However, Bay County reserves the right to negotiate with any insurers or administrators of medical plans and to award plan contracts and designate insurers and administrators of its own choosing as long as comparable coverage is maintained. Effective from January 1, 2003 through June 30, 2003, employees shall contribute, through payroll deduction, 17% of the expected cost of health insurance in 2003, using the weighted average of the five health plans offered. For the period of time from January 1, 2003 through June 30, 2003, employees shall receive retroactive payment, within 30 days of execution of this agreement by all the parties, for overpayments they made toward the cost of health insurance during that period of time. For other overpayments made by employees in 20032003 and 2004, retroactive payment shall be provided to employees in approximately January 2004employees. Retroactive payments will be provided only to employees employed on the date of ratification of this agreement by the parties. Retroactive payments will be pro-rated for employees who switched coverage (e.g., from family to two-person coverage) or were employed for part of the retroactive period (i.e., hired after January 1, 2003 but before the end of the retroactive period). For the period of time January 1, 2003 through December 31, 20032004, the County will continue to offer Blue Cross Blue Shield PPO with dental and vision riders, Blue Cross Blue Shield PPO Plan 1, Blue Cross Blue Shield CMM 100, Blue Cross Blue Shield CMM 250 and Blue Care Network. During open enrollment in November 2003, 2004 and 2005, employees shall select, effective January 1st of the following year, either the Blue Cross Blue Shield PPO with dental and vision riders or the CMM 100 plan. Effective July 1, 2003, employees’ contributions shall be a percentage of the rates that are developed based upon the actual cost of the Blue Cross Blue Shield contract in 2002 and the 2002 Blue Care Network premiums. Accordingly, from July 1, 2003 through June 30, 2004, employees shall contribute, through payroll deduction, 17% of the rate developed for the Blue Cross plan in which the employee is enrolled or 17% of the 2002 Blue Care Network premium if the employee is enrolled in Blue Care Network. Effective July 1st of 2004, employees’ contributions shall be a percentage of the rates that are developed based upon the actual cost of the Blue Cross Blue Shield contract in the preceding year or the actual cost of the Blue Care Network plan in the preceding year. Consequently, effective July 1, 2004, employees shall contribute, through payroll deduction, 15% of the rates developed for the plan in which the employee is enrolled or 15% of the Blue Care Network plan in which the employee is enrolled. Effective July 1, 2005, employees shall contribute, through payroll deduction, 15% of the rates developed for the plan in which the employee is enrolled. RETIREES