Ratification Vote – MOU’s (Health Insurance)

Local 2432 Brothers and Sisters,

There will be a ratification vote held on Tuesday, August 29, 2017 between 7AM – 7PM at the Union Hall – 2734 Hollywood Boulevard (parking in the rear). All employees in AFSCME covered positions are eligible to vote. Below are highlights from Memoranda of Understanding that were negotiated with the City regarding health insurance changes that will affect all three of our bargaining units.

1. Additional Cigna Health Insurance “In-Network Only” Plan Option

Extensive negotiations were conducted with the City over its interest in reducing healthcare costs. After much discussion and meetings with the City’s health insurance consultants, a third plan was crafted that provided for lower City costs, as well as lower employee up front costs, with an in-network only plan.

Through this plan, if elected, employees electing single coverage (no covered dependents) will have 100% of their premium paid by the City, and if any dependents are added, then the City will pay 90% of the premium, with the employee responsible for payment of the other 10% of the premiums.

Employee co-pays under the alternative “In-Network Only” plan are $30 for primary care visits, $40 for specialist care visits, and $75 for urgent care visits.

2. Flexible Spending Accounts (“FSA”) and Health Reimbursement Accounts (“HRA”)


During negotiations for the current collective bargaining agreement, our attorney raised questions and concerns about the City’s proposals regarding member participation in the FSA’s being offered by the City. After ratification of the agreement, and after the City changed its carrier from Blue Cross Blue Shield to Cigna Insurance, the City advised that its continued funding of the FSA benefits would violate IRS rules and regulations.

Through those negotiations, the City agreed to establish an HRA benefit ($300 – single employee only; $400 – single employee with one dependent; and $700 – single employee with two or more dependents) for employees covered by City insurance or by their spouse’s health insurance (but only through 2018).

HRA’s provide for payments to be made for IRS approved, unreimbursed medical expenses. Your benefits are provided on a “use it or lose it” basis, so if not entirely used during a plan year, the balance goes back into the general pool for ALL employees participating in the HRA benefits in subsequent years.

3. AFLAC Insurance Plan for Certain Regular, Non-Seasonal Part-Time Employees

With regard to the previous extension of the FSA benefit cards to regularly-scheduled, non-seasonal part-time employees who work 15 or more hours weekly (but less than 30 hours weekly), since the City could not legally continue to offer FSA benefit cards (contrary to IRS requirements), Local 2432 negotiated with the City for an alternative benefit, and ultimately agreed upon an AFLAC Insurance Plan that provides up to $500 annual coverage for members for certain hospital indemnity and accident benefits.

***************************************************************

We have agreed to Memoranda of Understanding with the City for all three (3) bargaining units – General Employees, Supervisory Employees and Professional Employees, regarding these changes, and are working toward holding a ratification vote on Tuesday, August 29, 2017 between 7AM – 7PM at the Union Hall.  The proposed Memoranda of Understanding is posted below for members to review.

2017-0706 – MOU – General CBA Health Insurance

2017-0706 – MOU – Professional CBA Health Insurance

2017-0706 – MOU – Supervisory CBA Health Insurance