Health Benefits — New Payments Explained

HOW WILL THE OEA/OUSD CONTRACT LANGUAGE ON

HEALTH BENEFITS AFFECT ME?    

                 WHAT IS THE AGREEMENT?                         

The 2005-2008 OEA/OUSD contract defines how any increased costs in Health Benefits are covered.  Effective June 30, 2008, the OEA/OUSD contract, Section 24.8.1.11, establishes the following for the 2008-09 school year contribution:

• The OUSD will pay 86% of the cost of medical benefit premiums;
• Measure E shall contribute 10% of the cost of medical benefit premiums; and,
• OEA Bargaining Unit members (collectively) will pay 4% of the total medical benefit premiums.

WHAT DOES THAT MEAN FOR ME?

1. OEA unit members’ dollar contributions are capped at $700. OEA Bargaining Unit members can pay no more than $70 per month and much less based on the negotiated calculation indicated below.
2. OEA Member Health Benefit contributions can be paid as part of the IRS 125 plan.
3. The health benefit calculation is reached by using this process:

The district and OEA agree on the exact dollar cost of Health Benefit Premiums for 2008-2009 benefit year.

The cost to the total OEA Bargaining Unit is 4% of the exact dollar cost calculated.

OEA and the District determine the percent of total salary cost needed to generate the 4% dollar amount.   This year that figure is .0066

This percentage figure is applied to each unit member’s annual compensation (does not include extra duty pay).

That amount is divided by 10 months to establish a monthly dollar premium contribution.

The monthly figure is the unit member’s contribution for health benefits.

It can be deducted through the IRS 125 plan option for a potential tax savings.

Examples:     

Unit members working less than full time will contribute prorated amounts as per contract.

Through negotiations with the district, OEA has maintained quality Health Benefit coverage and has kept the cost to our members manageable, fair and eligible to be paid with pre-tax dollars.