Common use of PPO Plan Clause in Contracts

PPO Plan. The Board will offer a PPO (Preferred Provider Organization) option. All benefits will be negotiated as a separate item and be outlined in the summary plan description which is posted on the district website and outlines the bargaining unit member’s percentage of coverage and co-pays not addressed within this Article. a. The bargaining unit members per pay contribution toward the cost of health insurance through the PPO shall be: 1) During FY22, the bargaining unit member shall pay no more than 14% of the COBRA rate for a Single, Employee Plus Children, Employee Plus Spouse, or Family plan. 2) During FY 23 increases in COBRA rates will be divided as follows: i. In the event the COBRA rate increases by 5% or less in one (1) year, the employee share of the COBRA rate will equal the employee share from FY 22 plus one percent (1%) of the COBRA rate. ii. In the event the COBRA rate increases by more than 5% in one (1) year, the Board will pay the dollar amount equal to the first 5% and the employee will pay the balance. The employee share will increase to reflect the new percentage plus 1% for the duration of this agreement. iii. The Board and Association further agree that, in the event that COBRA rates decrease during the life of this contract, the above formula will be utilized in the allocation contribution reduction by the first 5% decrease to the Board and the balance to the employee. 3) During FY 24 following, increases in COBRA rates will be divided as follows: i. In the event the COBRA rate increases by 5% or less in one (1) year, the Employee share of the COBRA rate will equal the Employee share from FY 23 plus one percent (1%) of the COBRA rate. ii. In the event the COBRA rate increases by more than 5% in one (1) year, the Board will pay the dollar amount equal to the first 5% and the employee will pay the balance. The employee share will increase to reflect the new percentage plus 1% for the duration of this agreement. iii. The Board and Association further agree that, in the event that COBRA rates decrease during the life of this contract, the above formula will be utilized in the allocation contribution reduction by the first 5% decrease to the Board and the balance to the employee.