If an eligible employee’s work hours drop so that he/she loses eligibility, the employee may qualify for a “Buy-Up.” Under this provision, if the employee worked at least 50% of the hours required for monthly eligibility, the employee can buy up the difference between the hours actually worked and the hours required to satisfy the monthly eligibility requirement. The required buy up amount will be the difference between the hours actually worked and the hours required for coverage multiplied by the current contribution rate under the Master Labor Agreement (MLA)
Example: An employee was covered under Plan B but his hours dropped to 60. The required number of hours for Plan B is 120 hours a month. The difference between the hours worked and hours required is 60 hours. You would multiply 60 hours x the MLA contribution rate to calculate the required Buy-Up amount.
Required hours for Plan B 120 hours
Hours actually worked 60 hours
Difference 60 hours
60 hours x $8.05 = $483.00 self-payment
The Buy Up can be used for up to six (6) consecutive months. At the end of the 6-month period the employee can self-pay at a flat monthly amount (no hours offset) for an additional six (6) months (See Full Self-Payment Provisions above). The self-payment with offset of hours must be paid by the 20th day of the month prior to the coverage month. If the employee fails to make a timely self-payment in the amount required, the employee will forfeit his or her rights to these self-payment provisions. The employee and his dependents will lose eligibility and will be offered COBRA. You will again be eligible to use the Buy Up option after you re-establish eligibility as an active employee.