RATE INCREASE AS OF OCTOBER 1, 2022 for Cobra, Participation & Pre-Medicare Retired Participants
TO: PARTICIPANTS COVERED BY THE WELFARE PLAN
FROM: BOARD OF TRUSTEES
DATE: JUNE 9, 2022
SUBJECT: RATE INCREASE
Due to the increasing costs of providing health care coverage to our active participants and retirees, it is necessary to increase the cost of participating in the plan. We always take this action very reluctantly.
The new rates will be effective for all COBRA, participation and pre-Medicare retired participants. These rates are based on the hourly contribution rate for active participants. For Medicare eligible participants there will be no change at this time.
This cost is based on the funding rate of $7.20/hour (an increase of $0.25). The cost for participants under Plan A with dental coverage will be set at $1,404.00/person/quarter. The cost for an additional dependent under Plan A with dental coverage will be set at $513.00/dependent/quarter. The cost for participants under Plan B with dental coverage will be set at $1,292.00/person/quarter. The cost for an additional dependent under Plan B with dental coverage will be set at $471.00/dependent/quarter.
Effective October 1, 2022, the quarterly cost of coverage will be as shown on the attached rate page. Please do not pay based on this notification. You will receive your quarterly billing for 4th quarter 2022 as usual. We are sending this to provide notification of a rate adjustment prior to receiving your billing.