Below are some quick facts about the dollar bank system implemented on September 1, 2021
- After September 1, 2021, insurance eligibility will be month to month, and you will need $1,375 per month contributed for insurance coverage.
- A dollar bank system allows new participants to gain insurance much quicker, which will help us recruit new members and help members that run out of insurance get back in quicker.
- The Dollar Bank allows a maximum of six-months coverage ($8,250) – $1,375 times 6 – and once that amount is reached, everything over $1,375 per month goes into your HRA (Health Reimbursement Account).
- The health and HRA contributions are combined. The HRA didn’t go away, to the contrary, you now accumulate more money into your HRA under this system than just a dollar amount per hour because once your bank is full, all the extra money goes into your HRA.
- All contributions in excess of coverage requirement for the current month fill the Dollar Bank first, then flow into the HRA with no limitation.
- Example: 160 hours worked at $12.15 rate (combined HW rate and HRA) = $1,944 in contributions (deduct $1,375 for coverage) = $569 going to Dollar Bank or HRA. For someone with a full bank, $569 goes into their HRA under the new dollar bank system versus only $160 under the old system.
- Upon implementation of the dollar bank system in September 2021, participants received a minimum of three months of coverage in their bank to start – this was done to help the transition and really help those members that had low hours.
- Different contracts can have different rates resulting in different hour thresholds for coverage (higher rate, fewer hours for eligibility, lower rate more hours for eligibility). This provides members with flexibility and choices when they are allocating their pay raises. If members work under an agreement where hours are plentiful, they can choose a lower health care rate and put more in their pension or on the check, or, if you put more into the health fund you will actually benefit from working more hours with increasing your individual HRA. This system provides choices for membership, the previous system provided no choices, and had no benefit for members that worked big hours.
- Remember, HRA dollars can be used for deductibles, coinsurance, dental, vision, other medical expenses, self-payments, retiree premiums.
- The Fund will be sustained by continual work hours, investment earnings, good management of healthcare expenses by members and the Board.
Click here to download the Dollar Bank Information Sheet