Common use of Retiree Coverage Pre-Medicare Clause in Contracts

Retiree Coverage Pre-Medicare. The Employer shall make available to retirees that are not eligible for Medicare benefits the following options: Option 1: A choice of coverage under the one of the following health insurance plans: a. Blue Cross/Blue Shield of Michigan Flexible Blue 3 with Flexible Blue Rx Prescription Drug Coverage with a Health Savings Account (hereinafter collectively referred to as the “H.S.A Plan”). The Employer shall pay the illustrated premium cost of this coverage and make an annual contribution to each participating employee’s Health Savings Account in the amount of $500 for those selecting single coverage and $1,000 for those selecting Employee & Spouse, Employee Child(ren) or Family coverage. Employees may, at their option, make additional contributions through bi-weekly pre-tax payroll deduction as permitted by applicable law. b. Blue Cross/Blue Shield of Michigan Community Blue PPO Option 3 Revised Plan with Blue Preferred Rx Prescription Drug Coverage with a 50% co-pay ($5 floor and a $50 ceiling). c. Blue Cross/Blue Shield of Michigan Community Blue PPO Option 6 Revised Plan with Blue Preferred Rx Prescription Drug Coverage with a 50% co-pay ($5 floor and a $50 ceiling). Notwithstanding the foregoing, the retiree’s contribution toward illustrated premiums shall be limited to that amount, if any, which exceeds the maximum annual amount the Employer is permitted to pay on behalf of an active employee under Section 3 of the Publicly Funded Health Insurance Contribution Act, Public Act 152 of the Michigan Public Acts of 2011, for the same benefits coverage. In the event the State Treasurer ceases to publish the maximum annual amount an Employer is permitted to pay for medical benefits on behalf of active employees, under Section 3 of the Publicly Funded Health Insurance Contribution Act, Public Act 152 of the Michigan Public Acts of 2011, the Employer shall itself adjust the maximum annual amount of the Employer’s contribution to retiree health care using the same index and calculation formerly utilized by the State Treasurer. Option 2: Same health care benefits, including but not limited to, cost sharing, that it provides to its active employees until the retiree becomes eligible for Medicare. Medicare: