On this page you will find the items related to the Healthcare negotiations including the Tentative Agreement, Memorandum of Understanding, a brief Summary of Changes, and a segment of a presentation created to explain the final agreed upon structure of the new insurance premium calculation.
Summary of Changes
Employer Monthly Contribution The method for calculating the Employer’s Monthly Contribution (EMC) of health insurance premiums will change, resulting in employers paying a higher share of members’ monthly premiums.
Currently, the EMC is 85% of the weighted average of premiums across all plans. The EMC is then applied to the monthly premium of the plan the member has enrolled in.
Beginning in plan year 2024, the EMC will be 85% of the premium for the UMP Classic plan. The new EMC will be capped so that the employee contribution cannot be less than 2% of the EMC. The new EMC will then be applied to the monthly premium of the plan the member has enrolled in (as it is in the status quo).
Because the UMP Classic plan is more expensive than the average of all plans, this new calculation will result in the employer paying a greater share of monthly premiums than under the current calculation.
Flexible Spending Account Under the tentative agreement, the Flexible Spending Account (FSA) benefit will be available to more members. The FSA benefit includes an annual employer contribution of $250.
The current FSA is available to members who make the full-time equivalent of $50,004 annually or less.
Under the TA, the FSA will be available to members who make the full-time equivalent of $60,000 annually or less.
The employer and bargaining coalition have agreed to a memorandum of understanding to improve communications to members about the FSA from the employer and any 3rd party vendors.