CITY COUNCIL MEETING AGENDA PACKET

4938-6770-8028 v1 -30 - non-formulary (the Kaiser HMO provides for a two-tier prescription drug plan). The Preferred Provider Organization (PPO) medical plan co-pays shall be fifteen dollars ($15) for office visits. The prescription drug co-pays shall be ten dollars ($10) for generic, twenty-five ($25) for brand and thirty-five dollars ($35) for non-formulary. D. Changes to Plan Designs During the term of this Agreement, the City reserves the right to propose changes to the plan designs and co-pay structure in order to reduce costs to the City and employees. Changes to plan design shall be by mutual agreement. The City agrees to provide up to three (3) health plan options for employees and eligible dependents. At least two options will be HMOs and the other will be a PPO option. For the term of this agreement, the City agrees to continue to offer Kaiser as one of the HMO options. For the purpose of providing aforesaid health care coverage to eligible regular part-time employees including job share employees who average between twenty (20) and twenty- nine (29) hours per week, the City shall contribute an amount not to exceed fifty percent (50%) of the City's monthly contribution established for full time employees as set forth in the paragraph above. For regular part-time employees including job share employees who average between thirty (30) and thirty-nine (39) hours per week, the City shall contribute an amount not to exceed seventy-five percent (75%) of the City's monthly contribution above. 15.2 Hospital and Medical Care - Retiree A. Federal or State Legislation The City reserves the right to meet and confer with the Union for the purposes of coordinating retired employee’s hospital and medical care in the event Federal or State legislation is implemented that effects retiree’s medical insurance. B. Spousal Continuation of Benefits In the case where the employee eligible for two-party coverage is deceased, the amount the City is obligated to pay shall be reduced by one half (1/2). If the spouse remarries, the obligation by the City shall terminate. Domestic partners shall be treated in the same manner as spouses for continuation of benefits. C. Plan Design Plan Design for Employees Who Retired Before July 1, 2012 Employees who retired before July 1, 2012, retired with the same retiree benefit co-pay and plan design as provided to retirees on June 30, 2011. Employees retired before July 1, 2012 are not subject to the 15% premium cap provisions of Section 15.1.B. Plan Design for Employees Who Retire On or After July 1, 2012 Employees who retire or on after July 1, 2012, will have the same benefit co-pay and plan design as provided to active employees in accordance with Section 15.1.C and are subject to the 15% premium cap provisions of Section 15.1.B. Page 97 of 200