Coba Alert

Update to Aetna Health Plan for Members Hired After 2014

December 17, 2020

Dear COBA Members;

As a reminder, Section 14 of the June 18th, 2014 Memorandum of Agreement (otherwise known as the NIFA Agreement) states the following: (abbreviated)

Employee Benefits:

a.) Employees hired on or after the implementation of this agreement (June 18th, 2014) shall be entitled to receive health insurance benefits as provided by the Empire Plan, as is received by current employees, or an alternative health insurance plan as described below.

i.) If enrolled with the Empire Plan, the employee shall contribute 15% of the cost of the health insurance premium.

ii.) If enrolled with an alternative health insurance plan, (which shall include but not be limited to any offered plan of HIP, Aetna, Blue Cross HMO, and HIP/Vytra Network), the County shall pay, towards the cost of the premium in either the individual or family plan, all amounts up to the monetary equivalent of 85% of the cost of the Empire Plan (Individual or Family, as appropriate). To the extend the annual premium cost is equal to or less than 85% of the cost of the Empire Plan, the employer shall pay the full cost of the health insurance premium. To the extent the annual premium exceeds 85% of the cost of the Empire Plan, the employee shall pay the difference.

iii.) It is the intent of the parties that newly hired employees (those hired on or after the effective date of this agreement) shall be offered a health insurance plan option that requires no premium contribution. The parties further acknowledge that such an option may provide benefits and benefit levels that are different than those currently available. To this end, the County and COBA shall endeavor to identify and make available for such employees an alternative plan/s whose premium cost is equal to or less than 85% as soon as practicable. The parties acknowledge that this may result in newly hired employees being enrolled in a plan which requires a contribution for a period of time.

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This brings us to today.

From 2014 into 2016 all County employees hired after 2014 briefly contributed to the cost of the premium for their healthcare through Empire. In 2016, the County offered the Aetna OAMC plan to all County Employees hired after 2014 at no cost to those employees, since the premium for this plan was less than 85% of the cost of the Empire Plan premium. From 2016 to 2020 the premium for the Aetna Plan increased every year but did not exceed 85% of the cost of Empire. This is no longer the case.

The Aetna OAMC Insurance Plan premium is now higher than 85% of the Empire Plan's premium and as per the 2014 contract agreement, County Employees are required to pay the difference that this plan exceeds 85% of the Empire Plan.

On Dec. 15th, the County issued their annual Open Enrollment notification and included a notice stating that on January 1st, 2021: "those with an Aetna Individual Plan will now have a monthly contribution of $50.70, and those with a Family Plan will now pay $146.97 per month. Coverage will remain the same for both plans."

If you have been following news of the contract negotiations between the County and the PBA, SOA and DAI you know full well that health insurance and related contributions are a major issue of negotiations, much as they were back in 2014.

COBA has long petitioned the County to move forward in continuing to provide a "non contributory" plan for those Members hired after 2014, seeing that the Aetna Premium was gradually increasing year to year. The County, just this past month hired Siegel Consulting Firm for that purpose.

As for now, in January the deductions for Aetna are monthly not per pay period. They will be deducted from 24 paychecks not 26 and COBA has confirmed that these overage contributions for the Aetna Plan will be deducted on a pre-tax basis from the paychecks of those affected Members.

Several issues related to health care are being explored inside and outside of contract negotiations. We will keep you apprised of all matters as they progress.

Always In Unity;

Brian Sullivan, COBA President

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