Medical Contribution Rates for Employees

The total plan cost of the HMO and PPO has increased by 13 percent, to $225 million for May 2005. The city’s contribution will increase by $10 million, so that the City will pay 78 percent of the plan cost. This means that employees and retirees will pay 22 percent. Last year retirees experienced a large increase in monthly contributions, with segments of retirees who had higher claims costs having the largest increase. This year, the rates will increase the same for all categories, by HMO and PPO. HMO rates will increase about 22 percent for employees and retirees, and PPO rates will increase about 28 percent. Retirees over age 65, who don’t have Medicare, and are in the PPO/OOA plans will experience a higher than 28 percent increase.

Experts tell us that there is a great deal of value for these contributions, but we are very sensitive to the impact this increase will have on your monthly budget. That’s why the Medicare Advantage Plans should catch your eye.

Both Medicare Advantage Plans offer a health plan alternative, while greatly reducing your monthly contribution. Click here for more information or call (713) 837-9400 or (888)205-9266 for more information.

	Disease Prevention Discount Program Studies show that people who use tobacco are more likely to have higher medical claims and are hospitalized longer. They are also more likely to have smoking as a primary contributor to illnesses like heart, lung and pulmonary diseases that generally require long-term and costly medical intervention. For these reasons and others, employees, retirees, and their covered dependents who do not use tobacco will pay $25 less each month for health-care coverage. If you are paying the disease prevention discount premium of $25 less per month and use a tobacco product, you could lose medical coverage.

Rate Comparison

This chart compares your monthly rates to those of other employees in the area. Rates are rounded to whole dollars.

Source: City of Houston annual health benefits survey, January 2005. City of Houston data effective 5/1/05. Other participants’ data valid YTD 2005.