The City's health insurance plan is comprised of four coverage levels: Core, Buy-Up, Buy-Down and Modified Buy-Down in addition to the coverage types of single, two person or family. The City's employer premium contribution is based on the hard cap amount set annually by Michigan law, and employee premium contributions are determined by our plan underwriter at the amount for each coverage level and type for the cost above the hard cap amount. The Core and Buy-Down plans have the same employer and employee premium amounts; however, because the benefit level is less in the Buy-Down plan, the City of Marquette funds the difference through a Fixed Contribution Health Reimbursement Arrangement Plan (Flat HRA). Ahead of the July 1, 2022 renewal, our health committee, comprised of a representative from each bargaining unit and management, agreed to amend the Flat HRA Plan to allow employees more flexibility to utilize the funds they've accumulated through their membership in the Buy-Down plan once they separate from employment. Previous plan document requirements allowed only for employees with at least 15 years of service or more who were drawing a City pension to spend down their HRA balance post-separation. With the recommended changes, employees who separate for any reason with at least 10 years of service to the City of Marquette will be eligible to spend down this balance post-separation, 10 years being consistent with City pension vesting.
The attached Fixed Contribution Health Reimbursement Arrangement (Flat HRA) Plan Document is effective February 1, 2023. Going forward, this document will be updated annually with an up-to-date Schedule of Benefits in Schedule A, or mid-year if any changes are made to the plan as with this amendment.