During open enrollment in the fall of 2015 the Hershey Medical Center doubled the Smoker and Spousal surcharge costs. Business Agent Dave Vrona immediately filed a grievance stating that the surcharges were over the contractual 16.5% limit. The case deadlocked at the second step of the grievance process. Dave Vrona, with the approval of the Local 776 Executive Board, took the case to arbitration with the help and testimony of Steward Bob Kroster and Attorney Jason Weinstock.
Article 29 of the 2013 2016 agreement states that the cost the employee pays shall not exceed, in any event 16.5% of total cost of the applicable health benefit program thru June 30, 2016. On May 4, 2016 an arbitration hearing was held to hear the case of the Smoker and Spousal charges.
Decision award: On July 5, 2016 the independent arbitrator issued an opinion and award upholding the claims of Local 776 members. He directed Hershey Medical Center to reimburse members whose contributions in 2016, including any surcharges exceeded 16.5%. The total award gave $150,764.98 back to all hard working members at Hershey Medical Center. During calculation of the award it was also found that Hershey Medical Center was over charging for eye and dental in the same time frame which came to overpayment/refund of $9,487.57 for dental and $2,365.58 for vision for a total payout of $162,618.13 to all affected members.
To download, view, and print the complete arbitration decision follow the link below:
HMC Smoker and Spousal Surcharge