(1) For any contract period or periods beginning on or after July 1, 1995, the state shall make the following contributions from the various funds toward payment of a health insurance or health maintenance organization program which may include coverage for dependents:

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(a) For any employee with a service date of May 4, 1993, or after, the state shall pay seventy-nine percent of the total cost which was in effect on July 1, 1994, for the plan, option, and coverage chosen by the employee. For any plan effective on or after July 1, 1995, and for any employee with a service date of May 4, 1993, or after, the state shall pay seventy-nine percent of the total cost of the plan as of the effective date of the plan for the option and coverage chosen by the employee;

(b) For any employee who has a change in plan, option, or coverage after April 25, 1993, the state shall pay seventy-nine percent of the total cost which was in effect on July 1, 1994, for the plan, option, and coverage chosen by the employee. For any plan effective on or after July 1, 1995, and for any employee who has a change in plan, option, or coverage after April 25, 1993, the state shall pay seventy-nine percent of the total cost of the plan as of the effective date of the plan for the option and coverage chosen by the employee;

(c) For any employee who is required to change health carriers because of the termination of the plan and who does not change either the option or coverage, the state shall pay an amount equal to seventy-nine percent of the total cost which was in effect on July 1, 1994, for the optional major medical plan for the same coverage as the plan chosen by the employee, subject to the limitations in subsection (2) of this section;

(d) For any employee who chooses any coverage of the preferred provider organization plan, the state shall pay an amount equal to seventy-nine percent of the total cost which was in effect on July 1, 1994, for the optional major medical plan for the same coverage chosen by the employee; and

(e) For all other employees, except as limited in subsection (2) of this section, the state shall pay an amount equal to seventy-nine percent of the total cost which was in effect on July 1, 1994, for the optional major medical plan for the same coverage as the plan chosen by the employee.

(2)(a) Under no circumstances shall the state’s contribution exceed the actual cost of the plan, option, and coverage chosen by the employee.

(b) The state’s contribution shall not be less than seventy-nine percent of the total cost which was in effect on July 1, 1994, for the plan, option, and coverage chosen by the employee.

(3) For purposes of this section, (a) coverage shall mean the rate categories of one-party, two-party, four-party, and family, as offered under any contract entered into for medical benefits, (b) option shall mean one of the choices of levels of medical and other benefits offered by a carrier, and (c) service date shall mean the date maintained in the Nebraska employees information system and used for calculating vacation and sick leave benefits.

(4) If any provision of this section varies from the terms of a labor contract, the terms of the labor contract shall prevail for the employees covered by the labor contract.