03-26-08 Council Agenda - Laserfiche WebLink

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SECTION 12 - INSURANCE BENEFITS Health Insurance Availability Health insurance coverage for regular full -time employees 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. The employee's share of dependent coverage is paid through payroll deduction. Regular full -time employees hired on or after April 1, 2008 will be provided with a high - deductible health insurance plan subject to the same payment provisions described above. 1-ICFA 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 would be able to be enrolled July 1, 1994. We would not be able to backdate the coverage for a June 1, 1994 effective date since the signature was after June 1, 1994. 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 will be processed for a June 30, 1994 termination date. Opt -Out Program Employees who are eligible for participation in the City's Health Insurance Program 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. With this choice, an employee would opt -out for themselves and /or their eligible dependents. This option applies to medical coverage only. For employees with dependent coverage, opt -out is for employee and family coverage, or family coverage retaining the employee's individual coverage - there is no other choice. 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. Employees choosing Opt -Out will receive the equivalent of the cost of single employee health insurance 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. Employees choosing to discontinue the Opt -Out program and enroll in the City's Health Insurance Program must do so during enrolltent periods as authorized by the City's Health Insurance Carrier. Enrollment may be subject to pre - qualification. 14 3