11-17-2021 Council Packet - Laserfiche WebLink

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16 SECTION 12 - INSURANCE BENEFITS Health Insurance Availability Health insurance coverage for regular full-time employees and part-time employees approved to work 30 or more hours per week is provided and paid for by the City. The City offers dependent coverage to employees to a maximum contribution as established by the City Council. For part-time employees approved to work at least 30 hours per week, the City contributes a percentage towards the single coverage cost or the commensurate percentage of the employee cost for family coverage based on the number of hours allocated to that position. The employee's share of dependent coverage is paid through payroll deduction. HCFA regulations will allow the City's insurance carrier to enroll members that sign an application up to the requested plan effective date. For example, an application signed June 10, 1994 2021 would be able to be enrolled July 1, 1994 2021. We would not be able to backdate the coverage for a June 1, 1994 2021 effective date since the signature was after June 1, 1994 2021. Retroactive terminations are not allowed. A termination request received by the end of the month will be accepted for the first of the next month. For example, a termination request received on or before June 30, 1994 2021 will be processed for a June 30, 1994 2021 termination date. Opt-Out Program Full-time employees who are eligible for participation in the City's Health Insurance Program for family coverage, or full-time single employees who are under age 26 and remain on a parent’s health insurance plan, are eligible for the Opt-Out choice. The City offers Opt-Out in order to recognize the needs of our diverse workforce by providing maximum flexibility in health care choices available to employees and their families. Employees are responsible for evaluating the feasibility of this option in terms of their family's health insurance needs. To be eligible for Opt-Out payment, an employee would opt-out for themselves and their eligible dependents. This option applies to medical coverage only and is not available to employees with single-coverage, except when an employee is covered under a parent’s medical policy. Medical benefits through the City of Little Canada will be available to Opt-Out participants should they lose their coverage provided by another source subject to the City's insurance carrier's regulations. Open enrollment in the City's Insurance Program is available only as designated by the City's insurance carrier. This alternative allows employees who are covered under another medical plan to "opt-out" of coverage and receive a cash payment in lieu of medical benefits. Single employees who are covered under a parent’s medical plan and choose Opt-Out will receive $250 per month, and all other employees choosing Opt-Out will receive approximately the equivalent of the average cost of single employee health insurance provided by metro cities per month for each full month; payment will be made on a bi-weekly basis and will be subject to ordinary income taxes. Participants in the Opt-Out Program must sign a release and show proof of medical benefits through another source. The City will have the right to refuse the Opt-Out option for an employee should the City's participation in its Health Insurance Program be jeopardized.