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<br /> <br /> STAFF REPORT <br /> <br /> <br /> <br />TO: Mayor Keis and Members of City Council <br /> <br />FROM: Sharon Provos, Finance Director <br /> <br />DATE: November 3, 2017 <br /> <br />RE: Opt-out for single regular full time employees <br /> <br /> <br />Currently, employees who are eligible for participation in the City's Health Insurance Program for family <br />coverage are eligible for the Opt-Out choice. Eligibility is related to the employee’s spouse having health <br />insurance coverage available through their place of employment. The City offers Opt-Out in order to <br />recognize the needs of our diverse workforce by providing maximum flexibility in health care choices <br />available to employees and their families. This has resulted in savings to the City and additional income <br />to the employee versus costs we pay out had they chosen to be on our plan. Single employees were not <br />eligible for this option when it was created because they could not remain on their parents’ insurance <br />when they took a full-time job. <br />Under recent federal health reform, young adults can now remain enrolled as a dependent on their <br />parent’s health insurance until the age 26. Given that option, the City would like to extend the Opt Out <br />choice to single regular full time employees who are covered under another medical plan. Employees <br />choosing Opt-Out will receive approximately the equivalent of half the average cost of single employee <br />(under age 26) health insurance per month. <br />The current calculation would be: <br />Insurance Premium <br /> <br />$334 <br /> HSA Contribution <br /> <br /> 166 <br /> <br /> <br />$500 /2 = $250 <br /> <br />Given the changes in Health Care laws, Staff recommends giving single regular full time employees the <br />opt-out choice option providing they show proof of medical benefits through their parents.