1. There is a cost sharing for self insurance. Currently, our rates are locked, and you pay a portion of the overall benefit. 16% paid by the FA, 84% paid by the Company. Each year the cost sharing will increase 1%, up to a maximum of 20% paid by the FA by the end of the Agreement.
2. A year-over-year cap not to exceed 15%.
Overall benefit cost is $1000:
If TA2 is ratified, the 2016 Cost Sharing change for the FA would increase from 16% to 17% (1% increase).
But lets say the overall benefit cost jumps from $1000 (2015) to $2000 (2016). In that example the cost sharing would require $340 (17% cost sharing paid by you) and $1660 (83% paid by Alaska). With the cap of 15% year over year, your prior year you paid $160, so 15% increase would cap the cost to you at $184.
Overall benefit cost increase to $2000:
As illustrated in the examples above, considering cost sharing and the 15% cap year-over-year, the maximum amount for the insurance benefit portion you pay may only increase by 15% year-over-year.
2015 – $100