The City of
Tacoma and the Joint Labor Committee jointly announce that on April 14, 2006
PERC arbitrator Frederick Rosenberry entered an interest arbitration settling
the outstanding issues between the parties for the benefit year 2006. In accord with arbitration standards, he issued his award
based upon the following:
While the award
addressed some minor issues concerning prescription drugs and wellness
incentives, there were two issues over which the parties had fundamental
disagreements. The award requires
employees to make co-payments for employee only and dependant coverage. The unions have requested that the City
review whether or not employees will have the choice to opt out of spouse or
dependant coverage if employee dependants are covered under a spouseÕs plan;
this question is being reviewed and the answer expected to be clear during the
open enrollment period.
In issuing his
award, the arbitrator concluded that granting the proposal for co-premiums is
consistent with contemporary employment standards and is supported by the
practices of comparable cities.
The arbitrator also reasoned that the fixed dollar amount contribution
by employees offers the City and the union the least volatile and most stable
co-premium structure. He pointed
out in his decision that medical insurance cost-sharing by way of co-premiums
has become commonplace as a part of total remuneration. He also noted that Òco-premiums have
become the standard in statutory interest arbitration awards, not the
exception.Ó
Employees
covered under the Regence PPO plan will be required to pay forty dollars ($40)
per month for employee-only health insurance and, if they have a spouse or
dependants on the City health plans, employees will be obliged to pay an
additional forty dollars per month toward dependant benefits. Thus employees
will pay a minimum of $40 per month a maximum of $80 per month towards their
health benefits.
Employees who
are covered under the Group Health Plan will be obliged to pay the difference
between the Regence PPO threshold of $796/mo. and the Group Health cost of $832.69/mo. (est.) For example, an employee in the Group
Health Plan would pay $40 per month for his or her insurance, $40 per month for
his or her spouse or dependants, plus an additional $36.69 per month for
coverage under that plan.
Employees who
are covered under the Selections Plan will be obliged to pay the difference
between the Regence PPO threshold of $796.00/mo. and the Selections Plan rate of $846.00. (est) For example, an employee in the Selections
Plan would pay $40 per month for his or her insurance, $40 per month for his or
her spouse or dependants, plus an additional $50.00 per month for coverage
under that plan.
For employees
wishing to make Plan changes, there will be an open enrollment period which is
expected to take place between June 15 and July 15, 2006. Employees will be required to
make choices among the following:
Health Plan Dental
Plan
Vision Plan Section
125 Health Spending Accounts (aka ÒChoices /Flex SpendingÓ)
The anticipated effective date for implementing
Health Plan changes is expected to be August 1, 2006.