Common use of Hospitalization and Medical Benefits Clause in Contracts

Hospitalization and Medical Benefits. 9.2.1.1 The Board will, during the life of the Agreement, maintain and contribute to the cost of the current hospitalization and medical program for full-time faculty members. The health plan year (HPY) is January through December. Effective January 1, 2016, the University will offer the Community Blue PPO with ECM $2000/$4000 plan. The Board has elected the 80%/20% requirements of Section 4 of the Publicly Funded Health Insurance Contribution Act (Act 152 of 2011), hereinafter referred to as the “Act”, for the immediate future. Accordingly, the University will pay no more than 80% of the total annual costs of the medical benefit plan selected above. Employees will pay 20% of the total annual costs of the medical benefit plan selected above. For purposes of this provision, total annual costs includes the premium or illustrative rate of the medical benefit plan, administrative fees, stop loss reinsurance, fees and taxes mandated by state and federal law, and all employer payments for reimbursement of co-pays, deductibles, payments into health savings accounts, flexible spending accounts or similar accounts used for health care, but does not include the costs of dental and vision and does not include beneficiary-paid co-payments or beneficiary payments into health savings accounts, flexible spending accounts or similar accounts used for health care. The employee’s share of premium or illustrated rates will be paid via payroll deduction. The election by the University under Section 4 and 8 of PA 152 may be made annually. If, during the life of this Agreement, the University fails to elect 80%/20%, by default the University will instead use the “hard caps”; the parties will promptly negotiate the effects of this decision on the bargaining unit.